Abstract:
From the perspective of the relationship between factor inputs and its distribution, this paper discusses the channels of increasing the proportion of labor remuneration in initial distribution. With the model constructed through Cobb-Douglas production function, it analyzes empirically the internal determinants of elements distribution, and the effect of changes in various factors on the proportion of labor remuneration in primary distribution. The results propose four possibilities to increase the proportion of labor remuneration: First, raising loan rates to increase the capital cost; second, reducing proportion of capital-intensive industries to decrease the output elasticity of capital; third, raising bank reserve ratio to reduce the supply of capital; fourth, improving the quality and skills of workforce to increase the output elasticity of labor.
ZHANG Wei, FAN De-cheng, WANG Shao-hua.Approach Research on Increasing Proportion of Labor Remuneration in Initial Distribution——Based Cobb Douglas Production Function[J] Economic Survey, 2013,V1(1): 120-124