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The Institution of Distribution According to Work and Its Realization Mechanisms

Author: FeiZhiGuang
Tutor: PanShi
School: Jilin University
Course: Institutional Economics
Keywords: distribution according to work production mode human capital distribution of property rights labor ownership mechanism of realization
CLC: F046.1
Type: PhD thesis
Year: 2008
Downloads: 446
Quote: 0
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Abstract


The different system of distribution has the different influnce on the economy function, which will produce the different efficiencies through encouragement to people. In Marx’s view of the system of distribution according to work, its realization depends on the public ownership of means of production and commodity economy withers away .Facing to present situation that the income gap is extending excessively and the order or distribution is chaotic, how can we turn the system into reality has practical significance. In China’s transitional economy, that if we can set up the realization mechanisms of the system of distribution according to work and make it compatible to the market mechanism paly a very important part in harmonious society construction and improving our fundamental economic institutions.On the basis of the theories of utopian socialists, Marx has founded the scientific theory of distribution according to work. Its core content is that the labourer obtains his consumer goods according to the quality an quantity of his work after deducting the social necessities. The Soviet Union and Eastern Europe had practiced this system, but there all exist the equalitarianism, inflation, economic recession and lacking restrictions, which dempened the workers’enthusiasm and resulted the low productivity. The defect of the system-self and implement leads to their failure and the experience has much enlightenment to us on the reformation of wage, controlling income disparity and the development of labor capital. The structure of distribution is decided by the structure of production. The system of distribution according to work is a system that embodies both efficiency and parity than any other system on history. The distribution of personal income is essentially about to dividing the property rights between human capital and material capital of the corporation transaction. Political institutions of distribution according to work have the big siganificance on the property rights, which can reduce the cost and externality between human capital and material capital. The change of this boundary of the property rights is decided by the transformation of technological innovation and institutions. The pattern of distribution has transformed with the mode of production of agricultural society, machine building society and information society, humanity was divided into the landlord class and the peasantry ,the capitalist class and the working class ,and then the labourers who master modern scientific techniques of production and management knowledges were separated from the normal ones .The transformation of the mode of production has improved the workers’productive status and their capability of property distribution .The coming intellectual technological revolution is going to improve the demand of the workers who have the ability to work with both techniques of production and management knowledges on- the-spot .This tendency will raise the workers’productive status and their capability of property distribution of them, and reduce the distinction between labor and capitalist, which can lay a foundation of the institution of distribution according to work. In the time that science and technology come to be the most important impetus to the development, the system of distribution according to work can encourage productive efforts and raise their human capital. It is the result of the evolution law of the distribution system, so not only in socialist countries but also in capitalist countries will it realize.The institution of distribution according to work should be exercised by transforming the different labour time value and different efforts to the compatible time. For the reason of diversity of people’s natural endowment, the inherent contradiction of socialist labour requires that the system be carried by market mechanism and be composed by firms to evaluate the work. Only by the social necessary labor, can we stimulate the producers to replace equipment and adopt scientific methods to reduce individual expenditure and improve efficiency. There is asymmetric informations between the manager and the worker .So we have no choices but to select and use effective salary to impel the workers to enhance their time value of labor and work hard .In the course of the distribution, the government should ensure the market main body be fair in market competition, restrict the monopoly and externalism, supply the public products and keep the development sustained.There is essential differences between the principle of distribution according to work and distribution according to essential factors of production for privilege and the mode of production reasons. These two principles are in the structure of social distribution together, as they are all carried out by labor factor and market mechanism. The system of distribution according to essential factors of production claims distribution on the marginal productivity of essential factors, which can promote the realization of the system of distribution with the raising rewards to work. So we must improve the mechanism of distribution according to essential factors of production, including the capital market, the labour market and the land market. That the principle of distribution according to work takes the dominant position in the structure, needs technological revolution and the improvement of work organizations, which can lead to the revolution of the workers’productive status and functions. The realization of the system of distribution according to work has two aspects that one is to expand the scope and one is to deepen the degree of labour factor, and also needs to increase the level of the measure .The level of science and technology and the ownership of labor decide the degree of the system of distribution according to work, and the later has employment, the condition of work and management three steps.We should improve the realization mechanism of the system of distribution according to work on seven aspects. First, we should promote the investment of the human capital and establish a new system to enhance the workers’ability of blazing new trails, develop the professional education, distribute elementary education and medical treatment evenly,and break free from obstacles of labour fluidity. Second, we are about to standardize the mechanism of market-oriented economy especially the market of essential factors, reform the economic and political institutions which lead to administrative monopoly of state enterprises to reduce income gap of industry. Third, we must strengthen labor safety ,safeguard the workers’interests from the organization and the legal system and the workplace governance, bring the staff and worker’s representative congress into full play, improve the employee stock ownership plans, and persevere in the policy of birth control. Fourth, we ought to reform the system of the title of professional post so as to take shape a new system of employment. Fifth, the dual economic structure in China’s urban an rural must be transformed and the rural technical level must be raised, so can the distinction between town and country be reduced which was caused by institutions .Sixth ,we need to take all the regions into account and plan accordingly as a whole, build the infrastructure and speed up the development of The West and The North-east. Finally, we must cut down the administrative expenses, adjust the proportion of the government, the enterprises and workers and raise the spending on public property, meanwhile get a raise in pay regularly and establish the environments for employee stock option plans.

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CLC: > Economic > Economics > Socialist mode of social production > Socialist distribution system > The principle of distribution according to work
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