Based on the data of China’s listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange from 2003 to 2017, this paper tries to figure out effect of FDI on China’s labor income share from a micro perspective. Now the reform and opening up and market-oriented reform in China continue to evolve, but the labor income share of foreign enterprises is not significantly bigger than that of domestic enterprises, which indicates that the promoting effect of foreign direct investment on labor income share of employees of the listed companies in China is declining or disappearing, but high-level control of foreign investors will raise the labor income share.
KeywordsForeign Direct Investment (FDI)Labor Income Share PSM
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