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This paper investigates the impact mechanism by which an incentive-based fertility policy may reduce the labor income share. First, the specific paths through which this impact mechanism is realized are analyzed using the production function. It is found that an incentive-based fertility policy triggers high savings, which implies more, cheaper, and more readily available capital to be invested in production. A distribution system that earns income based on factor contributions results in more gains for capital than labor, i.e., a lower share of labor income and a wider income gap between labor and capital. Second, the impact mechanism includes three theoretical hypotheses. They are that an encouraging fertility policy is negatively related to labor income share; this relationship is valid provided that the study subject is in a closed economy; and that capital intensification is a mediator variable of fertility policy affecting labor income share. Finally, to further corroborate the impact mechanism in this paper, a Hansen threshold panel model is applied to verify that the effect of fertility policy on labor income share has a threshold effect. This indicates that the effect of the former on the latter changes significantly before and after the change in fertility policy, confirming the existence of an impact mechanism. The established literature has paid little attention to the impact of incentivised fertility policies on the labour income gap. Using capital intensification as the mediating variable, this paper demonstrates the existence of the former effect on the latter. In view of this, under the encouraged fertility policy, this paper proposes specific measures to enhance the labor income share in order to narrow the income gap between labor and capital.
This paper investigates the impact mechanism by which an incentive-based fertility policy may reduce the labor income share. First, the specific paths through which this impact mechanism is realized are analyzed using the production function. It is found that an incentive-based fertility policy triggers high savings, which implies more, cheaper, and more readily available capital to be invested in production. A distribution system that earns income based on factor contributions results in more gains for capital than labor, i.e., a lower share of labor income and a wider income gap between labor and capital. Second, the impact mechanism includes three theoretical hypotheses. They are that an encouraging fertility policy is negatively related to labor income share; this relationship is valid provided that the study subject is in a closed economy; and that capital intensification is a mediator variable of fertility policy affecting labor income share. Finally, to further corroborate the impact mechanism in this paper, a Hansen threshold panel model is applied to verify that the effect of fertility policy on labor income share has a threshold effect. This indicates that the effect of the former on the latter changes significantly before and after the change in fertility policy, confirming the existence of an impact mechanism. The established literature has paid little attention to the impact of incentivised fertility policies on the labour income gap. Using capital intensification as the mediating variable, this paper demonstrates the existence of the former effect on the latter. In view of this, under the encouraged fertility policy, this paper proposes specific measures to enhance the labor income share in order to narrow the income gap between labor and capital.
The subject of the study is organizational, managerial, socio-economic relations that arise in Russian regions and municipalities during the implementation of investment projects under the conditions of sanctions. The purpose of the study is to analyze and develop recommendations for regional and municipal authorities on attracting investments in the conditions of severe sanctions pressure from “Western” countries on the Russian Federation. The article uses empirical research methods to identify, analyze new trends and best practices in attracting investment to Russian regions and municipalities. The authors examine in detail such aspects of the research topic as the increasing importance of attracting investment to municipalities and regions due to a significant reduction in foreign direct investment due to the imposed sanctions. Particular attention is paid to identifying sources of investment capital in Russia and in “friendly” countries. As well as creating conditions for the implementation of investment projects in Russian regions and municipalities under unprecedented sanctions restrictions. To activate investment processes, it is necessary to ensure: the development and implementation of development strategies for municipalities and regions; identification and use of “unique” natural, industrial and human resources; development of investment infrastructure; creating conditions for the relocation of modern production complexes from large cities; the preferred choice of investors from “friendly” countries and representatives of domestic businesses returning capital from Western offshores; formation of special economic zones in the regions. The novelty of the study lies in the fact that, based on an analysis of the best domestic practices, specific recommendations have been developed for regional and municipal authorities on searching and attracting investment resources to Russian regions and municipalities under the conditions of “strict” sanctions restrictions. The use of research results makes it possible to intensify the processes in regions and municipalities: attracting modern high-tech economic facilities; increasing production and financial potential; improving the quality of life of the population, etc.
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