Abstract Utilizing the data of A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2007 to 2021, the paper investigates the relationship and intrinsic mechanisms between corporate engagement in supply chain finance and the labor income share. The findings reveal that participation in supply chain finance by enterprises significantly enhances the labor income share. This conclusion is substantiated by a battery of robustness checks, which confirm the stability and reliability of the results. The results of the mechanism test indicate that alleviating financial constraints and upgrading the structure of human capital are the primary channels through which supply chain finance enhances the labor income share. Furthermore, the effect of upgrading the structure of human capital is manifested in the increased demand for high-skilled labor and the displacement of low-skilled labor. Further research demonstrates that for enterprises with higher supply chain concentration, lower labor adjustment costs, stronger market power, and labor-intensive characteristics, the enhancement of the labor income share through participation in supply chain finance is more pronounced. This paper not only broadens the research horizon on the determinants of labor income share but also provides empirical evidence for the specific pathways through which supply chain finance empowers micro-enterprises to achieve high-quality development from the perspective of factor income distribution.
2024, Vol. 41 
