The Impact Of Market Power On Labor Share

With the deepening of reform and opening up,the rapid development of China’s economy has been eye-catching.However,according to data from the National Bureau of Statistics,China’s labor share has not increased in tandem with the economy.At present,the labor share of developed countries is between 55% and 60%,while China’s labor share is only maintained at 40% to 52%.It is found that China’s labor share is lower than the level of most developed countries in the world.Labor income is the main source of residents’ income.my country’s consumer demand mainly comes from labor income.When the distribution of factors is unfair,it is not conducive to expanding domestic consumer demand,and is not conducive to the sustained and healthy development of the economy.Therefore,promoting the simultaneous increase of labor share and economic growth is not beneficial.Stable economic development has important practical significance.First of all,this thesis reviews the theory of national income distribution and finds the factors affecting labor share based on this.Then the thesis sorts out the calculation methods of labor share by collating the past research,and combs the related literature on the impact of technological progress,factor distortion and globalization on labor share.At the same time,it is found that product market power is an important factor that causes the decline of labor share,so the relevant literature on the impact of market power on labor is separately sorted out,and the measurement methods of the cost-plus rate of the measurement index of market power are determined as the accounting method and the production function method.At the same time,market power analyze the mechanism of labor share and find that market power affect labor share through technological innovation.Secondly,the thesis briefly describes and analyzes the labor share and cost markup of the manufacturing industry.It is found that the labor share of the manufacturing industry is on a downward trend.The labor share of manufacturing enterprises in the eastern region is relatively low,and the labor share of manufacturing enterprises such as the clothing industry is relatively high;Manufacturing companies have the highest cost markup rates,and high monopoly industries and capital-intensive industries have higher cost markup rates.Finally,the thesis uses industrial enterprise data from 1998 to 2007 to conduct an empirical analysis.Through the construction of a fixed-effect model,it is found that market forces have a significant inhibitory effect on the labor share of the manufacturing industry.It also finds that in different regions,different industries and different types of enterprises,the degree of influence is has a difference.Among them,in the eastern region,heavy industry,and private manufacturing companies,market forces have a more obvious inhibitory effect on labor shares.According to the thesis’ s theoretical analysis and empirical test results,it is determined that market forces are an important reason for the decline in labor share.The article believes that firstly,the fact that labor share should be reduced should be treated reasonably;secondly,the increase in market power of manufacturing enterprises has brought about a decline in labor share,then the government should appropriately guide market competition,strengthen supervision of monopoly enterprises,and accelerate market integration.Construction,which in turn promotes the increase in the overall labor share of China’s manufacturing industry.