An Analysis on the System of Our Human Capital Participating in the Enterprise's Income Distribution

This paper argues that it is nonsensical to analyze statically and abstractly which holds the dominant position, human capital equity or stockholders' equity of physical capital, or, they are equal. In an enterprise, there is not a simple transformation from one to the other between, but different seeking from, the personal income of human capital and the enterprise's total income. Human capital calls for being priced by its own self, that is, how much should be gained from the enterprise's income and its surplus income is determined by its own talent and contributions to the enterprise through effective mechanisms. It is, therefore, necessarily demanded that designed be an equity system and an enterprise administration structure capable of releasing the initiative of human capital so as to reduce the distinction between the Chinese enterprise's and foreign countries' labor productivity, inccease our competitiveness and speed up our innovation.