Social Sciences in China (Chinese Edition)

No. 8, 2024

 

Changes of Labor Income Distribution Pattern of Chinese Urban Residents during the High-Quality Development Stage (2012-2021)

(Abstract)

 

Zhu Bin and Li Lulu

 

As China enters the stage of highquality development, the country has embarked on a “second major transformation,” shifting the driving force of economic growth from factor-driven to innovation-driven. This transformation has profoundly impacted the mechanisms and patterns of income distribution. With the improvement of the market system and the development of information technologies, market transaction costs have significantly decreased, greatly accelerating the market mobility of various factors of production. This not only facilitates the recombination and innovation of production factors but also promotes a shift in market forms: from highly organized market forms to individualized market forms. The previously close ties between work organizations and employees have weakened, and more social resources are now directly allocated through a variety of market participants rather than indirectly allocated through highly organized systems. Using CGSS survey data from 2012 to 2021, the analysis of urban residents’ income reveals that, on the one hand, the role of work organizations in income distribution is beginning to decline; on the other hand, the power of resource allocation is increasingly shifting vertically among workers. Individuals and groups that play a significant role in the innovation process are expected to see increased income returns.