Changes in labor share of China

A micro-level anatomy

Bibliographic Data

ID6045479
AuthorsJunsen Zhang (0009-0009-2620-9834, Zhejiang University of Finance and Economics), Qi Yu (0000-0002-0426-5407, Zhejiang University of Finance and Economics), Kang Zhou (0000-0003-1036-5022, Zhejiang University of Finance and Economics, corresponding author)
Year2025
Volume5
Issue2
Pages85-101
Publication date2025-06-01
Open AccessYes
TypeARTICLE
VenueChina Economic Quarterly International (JOURNAL)
Journal identifiersISSN: 2666-9331 • E-ISSN: 2666-9331
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.ceqi.2025.05.002
OpenAlexW4411022100
LanguageEN
References cited21

Using comprehensive firm-level databases, we study the micro-basis of different trends in aggregate and individual labor shares in China's manufacturing sector during 1998–2016. We find that (1) redistributing value added towards the bottom of labor share distribution causes the decline of aggregate labor share; (2) the redistribution effect is driven by firms gradually increasing market share and reducing labor share; and (3) state-owned enterprises contribute significantly to the changes in aggregate labor share. The analysis of this paper enhances the understanding of the changes in China's labor share from the perspective of dynamic change of micro-firms

China · Geography · Global trade and economics · Labor market dynamics and wage inequality · Medicine · Regional Economic and Spatial Analysis · Anatomy

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Open DOIOpen Access