Research On The Social Economic Effects Of The Minimum Wages System In China

The minimum wage system is one of the effective means for the government to protect the basic rights of workers, it has a very important function to make it obtain reasonable labor remuneration and maintaining the basic living conditions. From the international perspective, since the western countries took the lead in the implementation of the minimum wage system, the social economic effects have been discussed extensively by the academic community and the whole society, but the results are very different.Since 1978, under the background of reform, China’s economic strength has been significantly improved, so from the last century 90’s began to implement the minimum wage system in China, and in practice has achieved obvious effect. We must draw a clear that the necessity and function of the minimum wage system to the social economy in theory, and the implementation of the minimum wage system is not only the need to improve the minimum wage system, but also to protect the basic rights of workers and promote the coordinated development of social economy.This paper analyzes the mechanism of the social economy based on heory of minimum limit, the theory of efficiency wage and Marx’s theory of minimum wage, by constructing the theoretical model of the minimum wage system and employment, labor supply, the effect of minimum wage on employment and labor supply is studied, in order to verify the economic effect of the minimum wage. by constructing the theoretical model of the income distribution, the effect of minimum wage on income distribution is studied, in order to verify the social effect of the minimum wage.In this paper, theoretical analysis and empirical analysis, qualitative analysis and quantitative analysis, normative analysis and policy analysis are used, complete the following main research contents:First, the theoretical interpretation of the minimum wage system. In this paper, from the perspective of economics, demography, sociology and other aspects of the minimum wage theory, the minimum wage system connotation and measurement method, the paper studies the minimum wage system, by summarizing the research results of domestic and foreign scholars on the minimum wage system, the minimum wage standard is chosen as the research scale, which lays the foundation for this study.Second, the research status of China’s minimum wage system. First, the history of China’s minimum wage system is summarized, and the minimum wage level is analyzed. Secondly, according to the macro statistical data, calculate the minimum wage level in China. Finally, a cluster comparison is carried out according to the minimum wage level, analysis of the variation of the minimum wage and employment, labor supply and income distribution in China.Third, theoretical analysis on the social economy effect of the minimum wage system.Based on the basic theory of minimum wage, summary the effect of the minimum wage system for employment, the minimum wage system for labor supply, the minimum wage system for income distribution;Then, Analysis of the effect of the minimum wage on employment, labor supply and income distribution mechanism, and the theoretical model of minimum wage system are established.Fourth, quantitative analysis on the social economy effect of the minimum wage system. Based on the theoretical model of minimum wage system and employment, labor supply and income distribution, the effect of the minimum wage system is analyzed by using the panel regression analysis. Based on macro data, the employment effect of minimum wage system, labor supply effect, income distribution effect are tested.Fifth, the experience of foreign minimum wage system. First of all, it analyzes the main practice of the United States, Britain, India, Brazil and other developed countries and developing countries of the minimum wage system; second, comparative analysis of the successful experience of developed countries and developing countries of the minimum wage system, and finally, to explore the experience of foreign countries of the minimum wage system.Finally, the conclusions and policy recommendations. According to the results of theoretical analysis and quantitative analysis, this study discusses the feasible way to adapt to the economic and social development in China at the present stage.