Factors Decomposition of China's Departments Labor Remuneration Based on LMDI Approach

Abstract

Abstract:

Using input-output model, this paper studies the growth of China's labor compensation and its influencing factors from the in-dustry level and department level. Firstly, Gini coefficient method is used to calculate China's labor remuneration gap between different groups in order to analyze the characteristics of labor remuneration changes between the various industrial departments as well as three in-dustries. Secondly, input-output model and logarithmic mean divisia index decomposition method are combined to make a factor decom-position analysis of China's industry labor compensation growth in two stages:2002-2007 and 2007-2012, with the purpose to explore the main factors affecting China's industry labor compensation growth. The results show that China's industry average labor compensation gap is within a reasonable range and has a shrinking trend in recent years. Total consumption, investment, exports and oth-er kinds of final demand are the main driving forces of various sectors' income growth; especially the second and third industry sectors income growth is increasingly relying on domestic consumption. The impact of final demand structure changes on each departments' in-come growth are not identical and there is potential for driving income growth by adjusting the department structure of the final demand.

Key words: input-output technology, logarithmic mean divisia index decomposition method, labor remuneration, Gini coefficient

Li Hui. Factors Decomposition of China's Departments Labor Remuneration Based on LMDI Approach[J]. , 2018, 30(5): 148-157.

References

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