The diffusion of industrial robot technology has coincided with increasing divergence in firms’market shares,potentially leading to enhanced market power and shifts in the distribution of factor income.This paper inv...The diffusion of industrial robot technology has coincided with increasing divergence in firms’market shares,potentially leading to enhanced market power and shifts in the distribution of factor income.This paper investigates the impact of industrial robot adoption on firms’labor income share and explores the underlying mechanisms,with particular attention to the rise of superstar firms.The findings suggest that,overall,the use of industrial robots contributes to an increase in labor’s income share,reflecting a generally favorable trend for labor’s position in primary income distribution.This effect,however,is markedly heterogeneous across different types of firms,regions,and industries.A significant concern is that robot adoption strengthens firms’relative market power within industries,fueling the emergence of superstar firms.These firms jointly influence labor income share through both a competition effect and a demonstration effect:the former is the main cause of declining labor shares,while the latter introduces a new channel through which labor’s share is further reduced.Although antitrust policies can help improve labor’s income share,they are not well-suited to curbing the market power expansion driven by industrial robot adoption.Thus,the concern over superstar firms’suppression of labor income remains.Amid the intensifying trend of“machines replacing humans”,this paper offers empirical insights into how to address the distributional implications brought about by the rise of superstar firms.展开更多
Using a theoretical model, this article concludes that age structures influence people＇s propensity to save and thereby influence their capital intensity. In the context that capital and labor are in a substitutional...Using a theoretical model, this article concludes that age structures influence people＇s propensity to save and thereby influence their capital intensity. In the context that capital and labor are in a substitutional relation, increased capital intensity may lead to a drop of labor income share. We perform empirical research with provincial-level data from 1990 to 2007 and have proved that the rising of the old dependency ratio and the decrease of the children dependency rate both contribute to the fall of labor income share. This assumption still holds true after the authors control the influences of other potential factors that may influence labor income share展开更多
Artificial intelligence(AI)is a strategic technology that leads a new round of technological revolution and structural transformation.This paper studies the effects of AI on structural change and factor income shares....Artificial intelligence(AI)is a strategic technology that leads a new round of technological revolution and structural transformation.This paper studies the effects of AI on structural change and factor income shares.As a general purpose technology and new infrastructure,AI may substitute either labor or capital and its application has differential prospects across sectors.With a multi-sector general dynamic equilibrium model,we find that AI services or AI-specific technologies will reallocate factors between sectors.The direction of the reallocation depends on sectoral differences in the output elasticity of AI and in the elasticity of substitution between AI and traditional modes of production.The process of structural change will in turn change the labor income share.This paper presents the theoretical conditions for the direction of these changes and the underlying economic mechanism.We derive policy implications about how to promote high-quality development with AI.展开更多
The declining share of labor compensation in China＇s GDP has raised intense public concern. Using statistics since 1978, this research paper examines, in detail, the changing patterns of labor compensation since refo...The declining share of labor compensation in China＇s GDP has raised intense public concern. Using statistics since 1978, this research paper examines, in detail, the changing patterns of labor compensation since reform and opening- up. Following international practices. this paper has adjusted China＇s labor compensation statistics.The results show that, iu contrast to a significant drop in the share of labor competsation in GDP before making an adjustment, the adjusted share has actually remained stable for the most part after the late 1970s.There has been no discernable fall until the last several years, The real prablem in China＇s functional distribution of national income since the late 1970s has not been the declining share of labor compensation in GDP. Actually, the share has always remained consistently low.It can be characterized as beiag ＂stable at a low level on a long-term basis＂.How to increase the labor share,which is in the interest of the average worker is a major question that must be addressed in China＇s future economic development.展开更多
Proceeding from trade structure variations,this paper provides a new perspective on the study of the share of labor income in China.China's commodity trade structure has experienced a step change in recent years.A...Proceeding from trade structure variations,this paper provides a new perspective on the study of the share of labor income in China.China's commodity trade structure has experienced a step change in recent years.According to theoretical analysis,trade exerts not only a direct effect on the share of labor income through international division of labor and specialization but also an indirect effect through factor intensity variations and technology progress bias.Empirical study discovered that export has a significant negative effect on the share of China's labor income while import has a positive effect.Import and export have different levels and directions of effect on sectors with different factor intensity.展开更多
The paper makes a comparative review and evaluation of different theories on impacts of the distribution of labor and capital income on economic growth as well as criticism of the mainstream theories and suggests usin...The paper makes a comparative review and evaluation of different theories on impacts of the distribution of labor and capital income on economic growth as well as criticism of the mainstream theories and suggests using Bhaduri-Marglin model as the theoretical basis for relevant research. By formulating the econometric model and analyzing time series data from 1978 to 2012, the paper makes an empirical research into the impact of labor share on economic growth in China. It has discovered that the positive effect of labor share on consumption demand growth in China outweighs its negative effect on investment and net export growth, concluding that growth in China is wage-led at present. That may mean that （1） increasing labor share promotes growth and the goals of equality and efficiency supports each other,＂ （2） the demand and optimizing structure＂ lies in regulation tools. key to ＂stabilizing growth, expanding domestic establishing a set of pro-labor institution and展开更多
Accurately measuring labor＇s share of income is of great importance for China ＇S national policies, particularly its labor compensation policies during the 12th Five Year Plan period. This paper first analyses the m...Accurately measuring labor＇s share of income is of great importance for China ＇S national policies, particularly its labor compensation policies during the 12th Five Year Plan period. This paper first analyses the measurement problems of labor＇s share of income from the perspectives of definition and data and their influences on the accuracy of the measurement results. Then it sums up and appraises several adjustment methods for existing measurement problems. Finally, the author estimates the operating surplus of private, unincorporated enterprises （OSPUE） in China using data from Urban household survey （UHS）, Rural household survey （RHS） and population survey, and further makes a correction to labor＇s share of income in China from 1993 to 2008 with data from flow of funds accounts. Finally, the author conducted trend analysis and international comparisons using the results obtained from the first part of the paper.展开更多
Empirical study of sectoral-level change in LIS in China reveals that change in industry structure is synchronous and positively correlated with LIS in different sectors of the economy, intensifying overall LIS fluctu...Empirical study of sectoral-level change in LIS in China reveals that change in industry structure is synchronous and positively correlated with LIS in different sectors of the economy, intensifying overall LIS fluctuations. Our analysis of LIS based on data from the major sectors of China＇s economy show that, relative to 1993, the increase in LIS in 1996 was largely due to the increased proportion of LIS in secondary industry. Relative to 1996, the fall in LIS in 2003 was closely related to the fall in the proportion of primary industry in the overall economy. The year 2004 was unusual in that it witnessed a dramatic fall in overall LIS level. The primary reason for the fall was a change in statistical definition that led to a significant reduction in LIS in the secondary and tertiary sectors. There were huge variations in LIS level among different regions. However, with the passage of time, the regional disparities are gradually being reduced. This is also closely connected to changes in industry structure and within-sector LIS fluctuations.展开更多
This paper explores why labor share in China has declined since the middle of the 1990s. Existing literature usually ascribes the labor share decline in developed countries to biased technological progress. However, o...This paper explores why labor share in China has declined since the middle of the 1990s. Existing literature usually ascribes the labor share decline in developed countries to biased technological progress. However, our investigation shows that China ＂s case is different. Using a simultaneous equation model estimated with three-stage least squares, we find that FD1, levels of economic development and privatization have negative effects on the labor share. The negative influence of FDl on labor share results from regional competition for FD1, which weakens labor forces＂ bargaining power. A U-shaped relationship exists between labor share and the level of economic development, and China is now on the declining part of the curve. The negative effects of privatization on the labor share stem from the elimination of the so-called ＂wage costs eroding profit ＂ situation and the positive supply shock on the labor market.展开更多
In this paper, we try to find some general rules and the structural factors that cause a fall in labor economic growth in countries all over the world, the by a U-shaped curve in which the tuming point is for labor sh...In this paper, we try to find some general rules and the structural factors that cause a fall in labor economic growth in countries all over the world, the by a U-shaped curve in which the tuming point is for labor share in primary distribution share. We show that, in the process of evolution of labor share is characterized $6,000 per capita GDP （in PPP, 2000）. We develop a model to explain this phenomenon that provides an in-depth explanation for Kuznets＇ inverted U hypothesis. Our findings indicate that the evolution of China＇s labor share is basically consistent with the model we have constructed. In addition, sectoral composition and the relative bargaining power of labor are also factors influencing labor share. These findings imply that labor share of primary distribution in China may enter an upward trajectory over the next two years. This process may be accelerated by the central government＇s policies for dealing with global financial crisis and by structural adjustment.展开更多
This paper examines the effect of government procurement on the firm-level labor share in China.Using manually collected local government contract data matched with A-share non-financial listed firms from 2015 to 2023...This paper examines the effect of government procurement on the firm-level labor share in China.Using manually collected local government contract data matched with A-share non-financial listed firms from 2015 to 2023,we find that firms receiving government procurement contracts experience increased labor shares.Government procurement enhances business stability and encourages regulatory and non-regulatory compliance,facilitating the allocation of economic gains to labor.This positive effect is primarily driven by non-SOEs and is pronounced among labor-intensive manufacturing firms.We also show that government procurement effectively promotes income equality and improves overall employee welfare.Our findings highlight the redistributive role of government procurement and the importance of contract design that aligns firm incentives with social objectives in emerging markets.展开更多
基金supported by General Project of the National Social Science Fund of China(NSSFC),“Mechanisms and Strategies of Artificial Intelligence’s Impact on Inter-firm Wage Disparities”(Grant No.21BJY097).
文摘The diffusion of industrial robot technology has coincided with increasing divergence in firms’market shares,potentially leading to enhanced market power and shifts in the distribution of factor income.This paper investigates the impact of industrial robot adoption on firms’labor income share and explores the underlying mechanisms,with particular attention to the rise of superstar firms.The findings suggest that,overall,the use of industrial robots contributes to an increase in labor’s income share,reflecting a generally favorable trend for labor’s position in primary income distribution.This effect,however,is markedly heterogeneous across different types of firms,regions,and industries.A significant concern is that robot adoption strengthens firms’relative market power within industries,fueling the emergence of superstar firms.These firms jointly influence labor income share through both a competition effect and a demonstration effect:the former is the main cause of declining labor shares,while the latter introduces a new channel through which labor’s share is further reduced.Although antitrust policies can help improve labor’s income share,they are not well-suited to curbing the market power expansion driven by industrial robot adoption.Thus,the concern over superstar firms’suppression of labor income remains.Amid the intensifying trend of“machines replacing humans”,this paper offers empirical insights into how to address the distributional implications brought about by the rise of superstar firms.
文摘Using a theoretical model, this article concludes that age structures influence people＇s propensity to save and thereby influence their capital intensity. In the context that capital and labor are in a substitutional relation, increased capital intensity may lead to a drop of labor income share. We perform empirical research with provincial-level data from 1990 to 2007 and have proved that the rising of the old dependency ratio and the decrease of the children dependency rate both contribute to the fall of labor income share. This assumption still holds true after the authors control the influences of other potential factors that may influence labor income share
文摘Artificial intelligence(AI)is a strategic technology that leads a new round of technological revolution and structural transformation.This paper studies the effects of AI on structural change and factor income shares.As a general purpose technology and new infrastructure,AI may substitute either labor or capital and its application has differential prospects across sectors.With a multi-sector general dynamic equilibrium model,we find that AI services or AI-specific technologies will reallocate factors between sectors.The direction of the reallocation depends on sectoral differences in the output elasticity of AI and in the elasticity of substitution between AI and traditional modes of production.The process of structural change will in turn change the labor income share.This paper presents the theoretical conditions for the direction of these changes and the underlying economic mechanism.We derive policy implications about how to promote high-quality development with AI.
文摘The declining share of labor compensation in China＇s GDP has raised intense public concern. Using statistics since 1978, this research paper examines, in detail, the changing patterns of labor compensation since reform and opening- up. Following international practices. this paper has adjusted China＇s labor compensation statistics.The results show that, iu contrast to a significant drop in the share of labor competsation in GDP before making an adjustment, the adjusted share has actually remained stable for the most part after the late 1970s.There has been no discernable fall until the last several years, The real prablem in China＇s functional distribution of national income since the late 1970s has not been the declining share of labor compensation in GDP. Actually, the share has always remained consistently low.It can be characterized as beiag ＂stable at a low level on a long-term basis＂.How to increase the labor share,which is in the interest of the average worker is a major question that must be addressed in China＇s future economic development.
文摘Proceeding from trade structure variations,this paper provides a new perspective on the study of the share of labor income in China.China's commodity trade structure has experienced a step change in recent years.According to theoretical analysis,trade exerts not only a direct effect on the share of labor income through international division of labor and specialization but also an indirect effect through factor intensity variations and technology progress bias.Empirical study discovered that export has a significant negative effect on the share of China's labor income while import has a positive effect.Import and export have different levels and directions of effect on sectors with different factor intensity.
文摘The paper makes a comparative review and evaluation of different theories on impacts of the distribution of labor and capital income on economic growth as well as criticism of the mainstream theories and suggests using Bhaduri-Marglin model as the theoretical basis for relevant research. By formulating the econometric model and analyzing time series data from 1978 to 2012, the paper makes an empirical research into the impact of labor share on economic growth in China. It has discovered that the positive effect of labor share on consumption demand growth in China outweighs its negative effect on investment and net export growth, concluding that growth in China is wage-led at present. That may mean that （1） increasing labor share promotes growth and the goals of equality and efficiency supports each other,＂ （2） the demand and optimizing structure＂ lies in regulation tools. key to ＂stabilizing growth, expanding domestic establishing a set of pro-labor institution and
文摘Accurately measuring labor＇s share of income is of great importance for China ＇S national policies, particularly its labor compensation policies during the 12th Five Year Plan period. This paper first analyses the measurement problems of labor＇s share of income from the perspectives of definition and data and their influences on the accuracy of the measurement results. Then it sums up and appraises several adjustment methods for existing measurement problems. Finally, the author estimates the operating surplus of private, unincorporated enterprises （OSPUE） in China using data from Urban household survey （UHS）, Rural household survey （RHS） and population survey, and further makes a correction to labor＇s share of income in China from 1993 to 2008 with data from flow of funds accounts. Finally, the author conducted trend analysis and international comparisons using the results obtained from the first part of the paper.
基金The authors express their appreciation for the funding support provided by the National Natural Science Foundation program, ＂Research on the Improvement of Chinese Employees＇ Wage and SaIary Formation Mechanisms＂ （project number： 70873022）, the Key Project of the Shanghai Scientific and Technological Innovation Committee （project number： 09ZS 11）, the Young Scholars Program in Social Science Research of the Ministry of Education （project number： 06JC790012）, and the Shanghai Key Project Research Program （project number： B101）. The original draft was presented at the 188th lecture in the Modern Economics Series hosted by the Research Center for the Chinese Socialist Market Economy at Fudan University. We hereby extend our sincere thanks to all the participants and our anonymous reviewers for their constructive comments. Needless to say, we are responsible for any errors or omissions in this study.
文摘Empirical study of sectoral-level change in LIS in China reveals that change in industry structure is synchronous and positively correlated with LIS in different sectors of the economy, intensifying overall LIS fluctuations. Our analysis of LIS based on data from the major sectors of China＇s economy show that, relative to 1993, the increase in LIS in 1996 was largely due to the increased proportion of LIS in secondary industry. Relative to 1996, the fall in LIS in 2003 was closely related to the fall in the proportion of primary industry in the overall economy. The year 2004 was unusual in that it witnessed a dramatic fall in overall LIS level. The primary reason for the fall was a change in statistical definition that led to a significant reduction in LIS in the secondary and tertiary sectors. There were huge variations in LIS level among different regions. However, with the passage of time, the regional disparities are gradually being reduced. This is also closely connected to changes in industry structure and within-sector LIS fluctuations.
基金supported by the National Natural Sciences Foundation(70873022)Innovation Program of Shanghai Municipal Education Commission(09ZS11)+1 种基金the Shanghai Leading Academic Discipline Project(B101)the"985 Project"of Fudan University
文摘This paper explores why labor share in China has declined since the middle of the 1990s. Existing literature usually ascribes the labor share decline in developed countries to biased technological progress. However, our investigation shows that China ＂s case is different. Using a simultaneous equation model estimated with three-stage least squares, we find that FD1, levels of economic development and privatization have negative effects on the labor share. The negative influence of FDl on labor share results from regional competition for FD1, which weakens labor forces＂ bargaining power. A U-shaped relationship exists between labor share and the level of economic development, and China is now on the declining part of the curve. The negative effects of privatization on the labor share stem from the elimination of the so-called ＂wage costs eroding profit ＂ situation and the positive supply shock on the labor market.
基金This paper is one of the phased products of a joint research project undertaken in 2007 between the Micro-Group of the Institute of Economics, Chinese Academy of Social Sciences （CASS） and CCWE, Tsinghua University. The micro-data employed come from a survey of firms conducted by the Institute of Economics, CASS, in 2006. The authors gratefully acknowledge the support of the Ministry of Education＇s Cheung Kong Scholars Program and the National Natural Science Foundation （project number： 70473048）.
文摘In this paper, we try to find some general rules and the structural factors that cause a fall in labor economic growth in countries all over the world, the by a U-shaped curve in which the tuming point is for labor share in primary distribution share. We show that, in the process of evolution of labor share is characterized $6,000 per capita GDP （in PPP, 2000）. We develop a model to explain this phenomenon that provides an in-depth explanation for Kuznets＇ inverted U hypothesis. Our findings indicate that the evolution of China＇s labor share is basically consistent with the model we have constructed. In addition, sectoral composition and the relative bargaining power of labor are also factors influencing labor share. These findings imply that labor share of primary distribution in China may enter an upward trajectory over the next two years. This process may be accelerated by the central government＇s policies for dealing with global financial crisis and by structural adjustment.
基金the National Natural Science Foundation of China(Grant No.71672141)the National Social Science Foundation of China(Grant No.21FGLB006)the Humanities and Social Science Foundation of the Ministry of Education of China(Grant No.21YJA630082).
文摘This paper examines the effect of government procurement on the firm-level labor share in China.Using manually collected local government contract data matched with A-share non-financial listed firms from 2015 to 2023,we find that firms receiving government procurement contracts experience increased labor shares.Government procurement enhances business stability and encourages regulatory and non-regulatory compliance,facilitating the allocation of economic gains to labor.This positive effect is primarily driven by non-SOEs and is pronounced among labor-intensive manufacturing firms.We also show that government procurement effectively promotes income equality and improves overall employee welfare.Our findings highlight the redistributive role of government procurement and the importance of contract design that aligns firm incentives with social objectives in emerging markets.
