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 the context of the labor market segmentation in China and its reaching the Lewis turning point,this paper interprets the changing trend of the labor share of income in China from the changing perspective of the emp...In the context of the labor market segmentation in China and its reaching the Lewis turning point,this paper interprets the changing trend of the labor share of income in China from the changing perspective of the employment ownership structure.The theoretical analysis reveals that the labor share of income follows a U-shaped curve when the agricultural labor force gradually moves into the private and self-employed sectors.Using the Chinese provincial-level panel dataset between 1990 and 2016,our empirical study finds that there is a critical threshold.When the share of agricultural labor force is above this threshold value,the impact of the increase in the employment share of the urban private sector on the labor share of income is negative.In contrast,the impact becomes positive when the share of the agricultural labor force is less than or equal to this threshold value.Moreover,the impacts of other variables of employment ownership structure don’t show this kind of feature on both sides of this threshold value.The increase in the employment share of the urban private sector accounted for about 29.37%of the growing labor share of income between 2007 and 2016.This paper provides policy implications in the following four areas:institutional guarantee improvement,harmonious labor relations establishment,redistribution policy imposition and economic development pattern transformation.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
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
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The authors acknowledge the sponsorship of National Science Fund for Distinguished Young Scholars(71625001)Key Program of National Natural Science Foundation of China(71631004)China Scholarship Council(CSC)Scholarships(201806310057).
文摘In the context of the labor market segmentation in China and its reaching the Lewis turning point,this paper interprets the changing trend of the labor share of income in China from the changing perspective of the employment ownership structure.The theoretical analysis reveals that the labor share of income follows a U-shaped curve when the agricultural labor force gradually moves into the private and self-employed sectors.Using the Chinese provincial-level panel dataset between 1990 and 2016,our empirical study finds that there is a critical threshold.When the share of agricultural labor force is above this threshold value,the impact of the increase in the employment share of the urban private sector on the labor share of income is negative.In contrast,the impact becomes positive when the share of the agricultural labor force is less than or equal to this threshold value.Moreover,the impacts of other variables of employment ownership structure don’t show this kind of feature on both sides of this threshold value.The increase in the employment share of the urban private sector accounted for about 29.37%of the growing labor share of income between 2007 and 2016.This paper provides policy implications in the following four areas:institutional guarantee improvement,harmonious labor relations establishment,redistribution policy imposition and economic development pattern transformation.
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.
