Technological Progress Path Shift,Labor Income Share And China’s Consumption Rate

After 40 years of rapid development of reform and opening up,China’s economic volume has jumped to the second place in the world,and technological progress has provided a constant impetus for economic growth.While China’s economy continues to grow,it also faces problems such as widening income gap and low consumption rate,and labor compensation as part of the functional distribution of factors can reflect the fairness of income distribution.Since the 1990 s,China’s labor income share and consumption rate have both declined to varying degrees,and although they have rebounded in recent years,they are still running at low levels.The 14 th Five-Year Plan points out that we should insist on the basic synchronization of the growth of residents’ income and economic growth,the basic synchronization of the increase of labor compensation and labor productivity,and the construction of a new development pattern of domestic and international double cycle more inseparable from the promotion of consumption.Therefore,from the perspective of technological progress,this paper explores the degree of influence of heterogeneous technological progress on labor income share,and explains the evolution of labor income share and resident consumption rate through the timely shift of technological progress path,which has certain theoretical and practical significance.Based on the CES production function,this paper elaborates the impact of different types of technological progress on the labor income share and the consumption rate from the mathematical level,and then the U-shaped evolution of the labor income share and the consumption rate due to the switch in the path of technological progress is observed through the realistic development of China in the past 20 years.Finally,an empirical test is done with the panel data of 30 provinces and cities in China excluding Tibet and Hong Kong,Macao and Taiwan from 1998 to2017.The test results show that embodied technological progress,characterized by the share of equipment investment in total investment,suppresses labor income share and residential consumption rate,while non-embodied technological progress,characterized by R&D intensity,causes a U-shaped change in labor income share and There is regional heterogeneity in the choice of technological progress in different regions of China;when R&D intensity is used as the threshold variable,the labor income share changes in opposite directions around the threshold,and the reduction of the labor income share and the consumption rate decreases significantly after the threshold is crossed;the labor income share plays a non-linear mediating role between the technological structure and the consumption rate.On the basis of the previous study,it is pointed out that in order to improve the labor income share and the consumption rate of residents in China,it is necessary to start from the necessity to improve the mode and direction of technological progress,specifically: firstly,to improve the mode of technological progress,reduce the introduction of technology and increase independent research and development;secondly,to change the direction of technological progress,so that the direction of technological progress changes towards labor embodied and labor biased.