Abstract The fruits of high quality economic growth should be shared by the majority of people in the whole society. Labor compensation proportion in first distribution of national income affects the quality of economic growth by changingthe structure of income distribution. In China in recent years the declining trend in labor compensation proportion is in line with U shape law of the changesin labor compensation proportion and industrial restructuring, biased technical progress, the impact of the labor market and the biased economic policy are the internal mechanism for the decline in labor compensation proportion in our country.