Abstract: The factor of labor force is a crucial breakthrough in supply-side structural reform. The analytic paradigm of mainstream economics cannot explain the structural problems in China thoroughly due to the special determination mechanism of labor force. Starting from Marx’s labor value theory, the value composition of present different kinds of labor force can be analyzed, thus it can be drawn that the nature of structural problems lies in the constraints on the value compensation of present labor force, which results in unsuccessful realization of expanded labor force reproduction, neither can the potential of the factor of labor force be fully released. Practically, effective solutions cannot be found unless we combine the three aspects: the promotion and compensation of the labor value as well as the construction of labor relations.

Key words: supply side; labor force; structure; value of labor power; expanded reproduction