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Factor Misallocation and Declining Labor Income-Share in China
Journal of Research in Business, Economics and Management
View Archive Info| Field | Value | |
| Title |
Factor Misallocation and Declining Labor Income-Share in China
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| Creator |
Wang, Songtao
Kenderdine, Tristan Chi, Qishui |
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| Description |
In China’s present economic development, factor misallocation and labor’s low income-share both are important and interrelated, with factor misallocation being an important reason for the decline in China’s labor income-share. Theoretical modeling demonstrates that if capital-labor is substitutable, the factor misallocation will lead to a decline in labor income-share. Empirical studies, using 2001-2013 provincial panel data show that factor misallocation significantly reduces labor income-share, even after controlling for other factors that affect the labor-share. The conclusion is both significant and robust. Therefore, economic policy which optimizes factor allocation will improve labor’s income-share.
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| Publisher |
SCHOLINK INC.
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| Contributor |
—
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| Date |
2017-05-02
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.scholink.org/ojs/index.php/jepf/article/view/912
10.22158/jepf.v3n2p188 |
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| Source |
Journal of Economics and Public Finance; Vol 3, No 2 (2017); p188
2377-1046 2377-1038 |
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| Language |
eng
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| Relation |
http://www.scholink.org/ojs/index.php/jepf/article/view/912/974
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| Rights |
Copyright (c) 2017 Journal of Economics and Public Finance
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