Luo, Changyuan; Zhang, Jun - In: China & World Economy 18 (2010) 6, pp. 1-18
This paper explores why labor share in China has declined since the middle of the 1990s. Existing literature usually … China's case is different. Using a simultaneous equation model estimated with three-stage least squares, we find that FDI … exists between labor share and the level of economic development, and China is now on the declining part of the curve. The …