Research On The Impact Of Industrial Intelligence On The Labor Income Share In China

Labor income share refers to the proportion of labor payment in GDP in initial distribution.The higher the labor income share,the more equitable the social distribution.Raising labor income share is the inevitable requirement for our country to realize the goal of common prosperity.As pointed out in the report of the 20 th CPC National Congress,one of the major goals of our country is to increase residents’ income in step with economic growth,and increase labor remuneration in step with labor productivity.The reports of the 18 th and 19 th CPC National Congress also mentioned the need to increase the proportion of labor remuneration in the initial distribution.It is worth noting that the report of the 20 th CPC National Congress also mentioned that in the next five years,we will make new breakthroughs in high-quality economic development and enhance the ability of science and technology to become self-reliant.This shows that high-quality economic development is the premise and foundation for achieving the goal of common prosperity.With the vigorous development of the new generation of information technology,intelligence has become an important engine to promote high-quality economic development.However,it is confusing that despite the continuous improvement of China’s industrial intelligence level,China’s labor income share has been running at a low level for a long time,and the high-quality economic development does not seem to bring about a simultaneous increase in the labor income share.By constructing a task model including intelligent capital input and labor input,and decomposing labor income share,this paper discusses the theoretical mechanism of industrial intelligence affecting labor income share from the perspective of labor productivity effect,wage rate effect and wage rateproductivity gap.We find that industrial intelligence is negatively correlated with labor income share.Through automation mechanism,factor collaboration mechanism,technology diffusion mechanism and production and management optimization mechanism,industrial intelligence will greatly improve labor productivity.Through the substitution mechanism and bargaining mechanism,industrial intelligence tends to reduce the average wage,while through the creation mechanism,industrial intelligence tends to increase the average wage.The internal mechanism of industrial intelligence to reduce labor income share is that industrial intelligence leads to unbalanced growth of labor productivity and wage rate,and widens the wage rate-productivity gap.In the empirical part,this paper firstly calculates the labor income share of China and all provinces from 1990 to 2017.And then,this paper builds an industrial intelligence index system including intelligent basic investment,intelligent core business and intelligent industry form,and calculates the industrial intelligence level of each province from 2006 to 2017.Based on the provincial panel data from 2006 to 2017,the hypothesis of this paper is verified empirically.The main conclusions are as follows: Firstly,from 1990 to 2017,China’s labor income share experienced four stages of "first decline,then rise,then fall and rise again".From 2004 to now,the labor income share has been running at a long-term low level.Secondly,there are significant differences in the degree of industrial intelligence among different regions,with Beijing,Shanghai and Guangzhou leading the way for a long time.The growth potential of intelligent construction in the eastern and western regions is higher than that in the central region.Thirdly,industrial intelligence has a significant and steady negative impact on the labor income share.Every unit of industrial intelligence increases,the labor income share decreases by about 2.46-2.62%.Fourthly,industrial intelligence can significantly improve labor productivity and reduce average wage,indicating that industrial intelligence mainly participates in production through the way of replacing labor force,and the long-term mechanism of creating employment demand has not yet formed.The unbalanced growth of labor productivity and wage rate caused by industrial intelligence is the main reason for the decline of labor income share.Fifthly,there are differences in the impact of industrial intelligent construction on the labor income share at different levels.The negative impact of industrial intelligent construction on the labor income share is more significant in the highly intelligent area and the highly skilled area.Our suggestions are as follows: Accelerating the improvement of income distribution system and social security system while promoting the construction of intelligent industry;Unblocking the "double circulation" channel of industrial intelligence inside and outside the industry,and stimulate the potential of industrial intelligence to create employment demand;Formulating differentiated development strategies to promote intelligent and balanced development among regions;Establishing a re-employment training system to better cope with the adverse impact of industrial intelligence on the labor market.Compared with existing literatures,the marginal contributions of this paper are as follows: Firstly,this paper constructs a comprehensive industrial intelligence index evaluation system from the three perspectives of intelligent basic investment,intelligent core business and intelligent industrial form.;Secondly,this paper innovatively analyzes various mechanisms through which industrial intelligence affects labor productivity and wage rate.This paper further expands the existing research by analyzing how industrial intelligence affects the labor income share from the perspectives of labor productivity effect,wage rate effect and wage rateproductivity gap.