Could Financial Constraints Cause Labor Income Shares to Decline? Evidence from Data at Firm Level in China
研究了财务约束对中国企业劳动收入份额的影响，发现高负债的私营企业会减少就业或降低工资，从而降低劳动收入份额，但国有和外资企业无此效应。
This paper investigates the effects of financial constraints on the labor income shares.We propose a hypothesis firstly,when financial market is far from perfect,firms with high debts are difficult to get working capital via borrowing.As a result,they are likely to reduce employment or wage level,which is expected to have negative effects on the labor income shares.With data at firm level in China,we employ system GMM to estimate and find supporting evidence.The estimation results show that,for private firms,debt asset ratio (proxy of financial constraints) is significantly negatively correlated with labor income shares.But for state-owned firms and foreign invested firms,there are not such findings.This difference is ascribed to the reality that,in China,only private firms are subject to financial constraints.