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.
Introduction.- Theoretical and Empirical Development of Research on Labor's Share.- Estimation and Analysis of Movements of Real Labor's Share.- The Structure Factors of Movement of Labor's Share: Comparison Analysis of Income Approach of GDP and Flow of Funds Account of China.- Economic Growth and Labor's Share: Evidence from Chinese Household Survey Data.- Kuznets Stylized Effects and Decrease of Labor's Share: Evidence from Chinese Provincial Data.- Change of Trade Mode and Decrease of Labor Share: Empirical Evidence from China's Industrial Sector.- Firm Heterogeneity, Ownership Structure, and Labor's Share: Evidence from Chinese Firms.- Conclusion.