YANG Jijun：Lewis Turning Point, the National Income Distribution Structure and Economic Rebalancing

Abstract：The paper estimates rural surplus labor by making use of the standard structure method, and on the basis of this, it attempts to explain the reasons for Chinas internal and external economic imbalances from the development stage of dual economy. This paper finds that, before the Lewis Turning Piont, unlimited supply of labor leads to constaint of wage increase, biased distribution of national income to enterprises and government departments; while after the Lewis Turning Piont, labor remunaration takes more account in national income, the consumption potential of resident department expands, and the national deposit rate shows an inverted U-shape along with different dual economic stages. Meanwhile, the flow-of-funds statements show that in the stage of social redistribution, the net welfare of resident department social insurance is negative, which reflect that fiscal transfer payment is reverse adjustment and it restrains current consumption capacity of resident department. Therefore, in one word, we should break the segmentation of labor market, and wokr through the tension of dual economy; in the other word, we should also modify the structure of government spending, steadily increase the labor income in order to release domestic consumption potential.

Key words： Lewis Turning Point    Income Distribution    Economic Imbalance    System GMM

source:Finance & Trade Economics ,No.10,2015