Regional Income, Labor Income Tax and Human Capital Accumulation -Based on the test of panel data model with variable coefficient

DOI

10.2991/sekeie-14.2014.23How to use a DOI?

Keywords

Regional income; effective labor income tax rate; human capital

Abstract

The supply of human capital depends on income level and the labor income tax. This paper evaluates the provinces’ average effective labor income tax rate and the level of human capital in China applying the international commonly used assessment methods. Then analyses the Influence of regional revenue level and the effective labor income tax rate on human capital and its inner logic using provincial panel data model with variable coefficient in the years 2008-2012. And further analyses the relationship differences of regional revenue, effective labor income tax rate and the human capital among provinces in China. The study finds that regional revenue level and human capital accumulation are positively correlated. The income effect is greater than the substitution effect for taxation on labor income in China’s current taxation systems. But the impact is different among regions. Human capital is significantly and positively correlated to the effective labor income tax rate, but the positive correlation to the regional per capita income is not significant in the Eastern China. Human capital accumulation, regional per capita income and effective labor income tax rate are significantly and positively correlated in the Central and Western China. Finally this paper explains the empirical results and puts forward some measures to improve the human capital accumulation.

Copyright

© 2014, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yanfeng Jiang
PY  - 2014/03
DA  - 2014/03
TI  - Regional Income, Labor Income Tax and Human Capital Accumulation -Based on the test of panel data model with variable coefficient
BT  - Proceedings of the 2nd International Conference on Software Engineering, Knowledge Engineering and Information Engineering (SEKEIE 2014)
PB  - Atlantis Press
SP  - 98
EP  - 101
SN  - 1951-6851
UR  - https://doi.org/10.2991/sekeie-14.2014.23
DO  - 10.2991/sekeie-14.2014.23
ID  - Jiang2014/03
ER  -