Unbalanced Economic Growth and Uneven National Income Distribution: Evidence from China
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Using the data from the Urban Household Survey, the authors examine trends of raw labor and human capital’s share of GDP in order to explain the decreasing trend of labor’s share in China during 1988 to 2007. The authors divide labor into raw labor and human capital by applying Mincerian earning regressions and find that human capital’s share increases rapidly while the raw labor’s share decreases steadily. Extending the MRW growth framework, the authors find that the movement of national income distribution is closely related to the unbalanced growth of three factors, namely physical capital, human capital and raw labor. Factor growth data from 1995 to 2007 further confirms that steady growth of physical capital, slowing down of the growth rate of human capital, and negative growth rate of raw labor are the causes of decreasing labor’s share of GDP since 1998.
JOUR
Minghai, Zhou
Wen, Xiao
Xianguo, Yao
2010
1729