Labor’s Share of Income : Another Key to Understand China’s Income Inequality

This book analyzes the decrease in labor share in China, which is a ratio of national income distribution to capital at three different levels (macro, meso, and micro) and from three different perspectives (growth, transition and opening up). The worsening income distribution has been a key issue for both Chinese and global economies in recent decades. The book shows that the decrease in labor share is closely related to economic growth, increasing extent of globalization, and firms with heterogeneous characteristics. Moreover, the book explains income inequality in detail, focusing on China’s increasingly important and emerging economy. Front Matter....Pages i-xix Introduction....Pages 1-10 Research Development of Theories and Empirics of Factor Income Distribution....Pages 11-58 Structure Factors in the Movements of Labor Income Share: Comparison Analysis of Income Approach of GDP and Flow of Funds Account of China....Pages 59-74 Unbalanced Economic Growth and Uneven National Income Distribution....Pages 75-103 Estimation and Analysis of Movements of Real Labor’s Share of Income....Pages 105-122 Decomposition and Mechanism of Movement of China’s Labor’s Share of Income....Pages 123-150 Change of Trade Mode and Decrease of Labor’s Income Share: Empirical Evidence from China’s Industrial Sector....Pages 151-179 Firm Heterogeneity, Ownership Structure and Labor’s Share of Income....Pages 181-204 Conclusions and Policy Implications of this Book....Pages 205-213 Back Matter....Pages 215-218