关键词: 共同富裕, 服务业, 劳动收入份额, 相对贫困

Abstract: Achieving common prosperity is a historic mission of the Communist Party of China Despite eradicating absolute poverty and becoming the worlds secondlargest economy，China faces challenges in addressing income inequality and relative poverty Relative poverty，marked by the welfare gap between lowincome groups and others，remains critical to inclusive development This study explores how industrial transformation and the rising service sector employment share affect relative poverty through changes in labor income share
This study develops a theoretical model to illustrate the mechanism by which the share of employment in the service sector affects the share of labour income and relative poverty The theoretical framework posits that a higher share of employment in the service sector contributes to an increase in the labour income share，which leads to a propoor effect by reducing relative poverty Using provincial panel data from 1993 to 2017，the study empirically tests these hypotheses and finds several key findings First，an increase in the employment share of the service sector significantly raises the labour income share Second，the positive effect of service employment on the labour income share becomes more pronounced after China passes the Lewis tipping point，reflecting a shift in labour market dynamics Third，an increase in the labour income share significantly reduces both the incidence and depth of relative poverty，confirming its role as a critical factor in reducing income inequality Finally，further mechanism analysis shows that the labour income share serves as an important intermediary linking the employment structure to the reduction of relative poverty
The contribution of this study is twofold First，it enriches the literature on relative poverty in China by filling a research gap in the theoretical and empirical analysis of its determinants While previous studies have mainly focused on descriptive statistics，this study constructs a rigorous general equilibrium model to capture the dynamic relationship between employment structure，labour income share and relative poverty Second，it extends the understanding of how the development of the service sector affects income distribution，in particular its impact on the welfare of lowincome groups
Our findings can help to understand the role of employment structure in determining income distribution and shed light on policymaking to reduce inequality and relative poverty as China moves towards shared prosperity Given Chinas large agricultural population and relatively low levels of education among middle and low income groups，promoting the growth of the service sector and labourintensive industries is essential to absorb employment and raise wages for vulnerable groups

Key words: common prosperity, tertiary industry, labor share in GDP, relative poverty