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How does government attention to new quality productive forces affect corporate labor income share?

Author

Listed:
  • Yu, Nutao
  • Peng, Cao
  • Chen, Kejin

Abstract

This paper takes listed companies on the Shanghai and Shenzhen Chinese A-share markets from year 2011 to 2022 as the research sample, quantifies government attention to new quality productive forces through the frequency of related terms in local government work reports, and examines its impact effect and mechanism on the labor income share within the jurisdiction. The study finds that the increase in government attention to new quality productive forces significantly raises the labor income share of enterprises, and this conclusion remains valid after a series of robustness tests. Mechanism testing reveals that government attention to new quality productive forces enhances the labor income share by promoting increased corporate R&D investment and human capital adjustments. Heterogeneity analysis finds that the promotion effect is more pronounced for enterprises that are non-state-owned, in the manufacturing sector, or located in high marketization regions. The conclusions of this paper can provide certain policy implications for the government to develop new quality productive forces and increase the labor income share of enterprises to some extent.

Suggested Citation

  • Yu, Nutao & Peng, Cao & Chen, Kejin, 2026. "How does government attention to new quality productive forces affect corporate labor income share?," Finance Research Letters, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:finlet:v:92:y:2026:i:c:s1544612326001212
    DOI: 10.1016/j.frl.2026.109590
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    References listed on IDEAS

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