A Comparative Study of Labor Factor Income and Factor Quality Effect in China and the United States Based on Value Chain Division of Labor
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Abstract Under the division of labor in value chain, the trade interests are more and more reflected in the income of the elements participating in the division of labor. China has become the largest value-added exporter in the world, but whether its value-added scale matches trade interests is a matter of concern. In this regard, this paper chooses the United States as the object of contrast and reference to study China’s labor factor income participating in the value chain division. This paper constructs a labor income distribution model based on value-added accounting to measure the labor income of China and the United States, and uses HSDA method to focus on the quality of factors that bring about the change of labor income. The results of this study show that although the largest value-added exporter, China’s trade benefit is far below that of the United States. Under the value chain division of labor, China’s labor income is more represented by capital income, while that of the United States is represented by labor factor income. The gap continues to expand between China and the United States in unit labor income, and after subdividing skills, it is found that the income gap is widened between China and the United States in high, medium and low skilled labor factor income. Factor quality has become the main factor affecting the growth of labor factor income, and the labor income gap between China and the United States is mainly caused by factor quality.
CUI Ri-ming,HAN Yuan-yuan,LI Dan. A Comparative Study of Labor Factor Income and Factor Quality Effect in China and the United States Based on Value Chain Division of Labor. Economic Survey, 2019, 36(3): 066.
2019, Vol. 36 
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