Determinant of Labor Income with Policy and Institutional Factors - Innovative Management in Information and Production - page 111

determinant and has a linear way under the policy factors, but not the determinant
owing to the restriction of institution factors.

5.2 The Openness of Regional Economy May be Testified

Trade, using the national and provincial data, is the determinant and has a linear way
in the national side but a nonlinear way in the provincial side. In the first and second
economic regions, under the complex perspective, trade is the determinant and has
a nonlinear and linear in the respective economic regions. But as we can find from
the result of third economic regions, trade is not the determinant anymore.

5.3 Policy Factors May Promote the Variables to be Relevant

Considering the industry structure, the secondary industry is not the determinant
using the national data, but is the determinant and has a linear way using the
provincial data. In the secondary and third economic industry, under the complex
perspective, secondary industry is the determinant and has a nonlinear way, but in
the first economic region, it is not the determinant, while under the policy factors,
it is the determinant and has a linear way, the result about the irrelevance stems
from the restriction of institution factors. Tertiary industry is the determinant using
the national and provincial data and has a nonlinear and linear way, respectively.
In the first and second economic regions, tertiary industry is the determinant and
has a linear way, but in the third economic regions, it is not the determinant owing
to the institutional factors, while under the policy factors, tertiary industry is the
determinant and has a nonlinear way.
To sum up, using national, provincial, and regional data may get different
results, which stems from the different data we adopt for one side. Furthermore,
the institutional and policy factors influencing mutually the labor income with
constraint more than just promotion and changing the mechanism from linear to
nonlinear are the essential causes.

Acknowledgements This paper is supported by the National Natural Science Foundation of

China(70973110).

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