The Labor Share Question in China

Bibliographic Data

ID9201440
AuthorsHao Qi (0000-0002-5830-1274, corresponding author)
Year2014
Volume65
Issue8
Pages23
Publication date2014-01-02
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueMonthly Review (JOURNAL)
Journal identifiersISSN: 0027-0520 • E-ISSN: 0027-0520
PublisherMonthly Review Foundation (PUBLISHER)
DOI10.14452/mr-065-08-2014-01_2
OpenAlexW2112627907
LanguageEN
Citations received6

In the past two decades, China's economic growth has been increasingly dependent on investment. To maintain the growth of investment, China must sustain a fairly high rate of profit, and the fall in labor's share has been seen as a crucial factor to sustain profitability.... Although the mainstream economists have widely admitted there is a downward trend for labor's share in China, they explain this trend with a story that has nothing to do with class struggle. In this story, the decline of labor's share is caused by sectoral changes, mainly the decrease of agriculture and the increase of industry and services as a percent of GDP in the reform era.... [But] Does the decline of labor's share result from sectoral changes?... [In fact] the decline of labor's share resulted from the loss in the power of the working class during the transition to capitalism. Sectoral changes have disguised the class conflicts in this historical process.This article can also be found at the Monthly Review website, where most recent articles are published in full.Click here to purchase a PDF version of this article at the Monthly Review website

Capitalism · China · Development economics · Economics · Investment (military) · Labour economics · Mainstream · Market economy · Neoclassical economics · Political science · Politics · Profit (economics) · Profitability index · Wage share · Working class · China's Socioeconomic Reforms and Governance · Law

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