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Power relations and the labour share of income in China

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  • Hao Qi

Abstract

The labour share of income in China substantially declined from the mid-1990s to the late 2000s. We analyse the effect of power relations among the state, workers and managers on the labour share, during China’s economic transition from a state–socialist economy to a market economy. We take a Marxian approach in variable selection to reflect power relations over the two stages of China’s reform era. The econometric analysis shows that two major changes in power relations—the social contract between the state and workers disappeared and workers’ power relative to management declined—have a significant effect on the labour share. Furthermore, sectoral changes have no significant effect on the labour share between 1999 and 2010.

Suggested Citation

  • Hao Qi, 2020. "Power relations and the labour share of income in China," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 44(3), pages 607-628.
    • Handle: RePEc:oup:cambje:v:44:y:2020:i:3:p:607-628.
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    File URL: http://hdl.handle.net/10.1093/cje/bez054
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    Cited by:

    1. Raihan, Selim, 2022. "What Does Data on Functional Income Distribution tell us about Trends in and Correlates of Income Inequality in The Asia-Pacific?," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(3), pages 45-64.
    2. Wang, Linhui & Cao, Zhanglu & Dong, Zhiqing, 2023. "Are artificial intelligence dividends evenly distributed between profits and wages? Evidence from the private enterprise survey data in China," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 342-356.
    3. Raihan, Selim, 2021. "Functional Income Distribution and Inequality in the Asia-Pacific Countries," MPRA Paper 110469, University Library of Munich, Germany.

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