The Impact Of Accelerated Depreciation Policy Of Fixed Assets On Labor Income Share

Labor income share is not only an important factor affecting the pattern of income distribution,but also the key to equality and economic development.The Kaldor Characteristic Facts state that the share of labor income in total income should stabilize.However,the labor income share in China has a U-shaped patter,which is the inverse of the trend of GDP growth.Therefore,it is important to investigate the underlying determinants of labor income share.Therefore,the influencing factors of labor income share have important research significance.In 2014,China began to implement the fixed assets acceleration policy.The deepening of capital caused by the policy will change the number and income level of labor force and have an important impact on the share of labor income.Using the pilot policy of accelerated depreciation of fixed assets in 2014 as a quasi-natural experiment and the micro data of Chinese A-share listed companies from2007 to 2019,this thesis constructs a difference-in-difference model,and empirically analyzes the policy effect of accelerated depreciation policy of fixed assets on labor income share.The study finds that the policy significantly increased the labor income share of pilot companies.Further analysis shows that the policy increased the labor income share of private enterprises,but had no effect on state-owned enterprises;the policy increased the labor income share of enterprises in the eastern region,but had no effect on enterprises in western region;the policy increased the labor income share of ordinary employees,but had no effect on the senior managers;the policy significantly reduced the capital income share,but increased the labor income share of income of subjects other than capital and labor.The mechanism analysis shows that on the level of per capita labor income,the labor creation effect of the policy is greater than the labor substitution effect,which leads to the rise of per capita wage;In terms of labor quantity,the labor creation effect of the policy is less than the labor substitution effect,which leads to the decline of employment.Overall,the labor creation effect of the policy is greater than the labor substitution effect,which has a positive policy effect on the share of labor income.