Study On The Minimum Wage System During Economic Transition In China

The minimum wage system is necessary for the government to coordinate industrial relations, and it plays an important role in safeguarding rational recompense of low-skilled workers.Many scholars discussed the necessity of the minimum wage system when it was enacted. By learning the experience of the international conventional practice, China has been implementing the minimum wage system since 1993. However, many people criticize the effect of the minimum wage system, and it is in the face of new challenges from the transitional labor market. In economic transiton, we need to make it clear whether the minimum wage system is required, based on which we can construct the rational public choice mode and minimum wages. That is helpful to perfect the minimum wage system and promote the harmonious development of society.On the assumption that there is bounded rationality, incomplete information, complexity and uncertainty in the political market, this paper shows the necessity of the minimum wage system in China during economic transition, and also analyzes the current situation of China's minimum wages. Based on which, this paper systematically studies the public choice of the minimum wage system and the measurement model, and provides policy advices to perfect China's minimum wage system.The main contents of the dissertation:1 .Sum up and construct systematic theory framework for the study of the minimum wage systemThe important theory base of this paper includes the minimal wages theory of classical economics, minimum wages theory of Max, and efficiency wages theory. However, the public choice theory provides a new perspective for the study. Based on wage determinism and public choice theory, this paper constructs the systematic theory framework.2.Show the necessity of the minimum wage system in China during economic transitionThis paper studies the necessity of the minimum wage system in China during economic transition on the analysis of the relation between minimum wages and securing workers' right, income distribution, individual human capital investment, industrial structure adjustment, and productivity. The conclusion is it is necessary to enact the minimum wage system.3.Study the current situation of China's minimum wage system during economic transitionThis paper gives a clear evolutional way of China's minimum wage system, and analyzes the enactment model and related indicators. It compares minimum wages with average wages, per capita annual consumption expenditure of urban households, per capital GDP, consumer price indices by region, and "three security line"in Beijing, and also studies the current enforcement situation.4. Study the public choice of China's minimum wage system during economic transitionThe public choice mode directly influenced the efficiency of the minimum wage system. This paper defines concepts of the public choice mode of the minimum wage system and major players of the public choice of the minimum wage system, and indicates the general evaluation rules appropriate to public choice of the minimum wage system. All these are providing the logical basis for the coming theoretical deduction. This paper analyzes the non-efficiency performance in the public choice of the minimum wage system, and indicates the transitional mode according with economic transition.5.Study the determining mechanism and measurement model of China's minimum wages during economic transitionThis paper constructs a dual—factor model of determining minimum wages, and systematically expatiates on determining and influencing factors. Defining concepts of basic value and decent value of minimum wages, this paper studies the measurement and adjustment model of minimum wages, and uses data of Beijing to implement empirical analysis.6. Put forward policy advices to perfect China's minimum wage system during economic transitionPolicy advices of this paper can be divided into 5 aspects: constructing the efficient way of displaying preferences of major players of the public choice based on hearings, people's congress at different levels deliberating on the minimum wage system, advancing the enforcement of the minimum system by improving efficiency of labor and social security departments, ensuring the appraising right of major players of the public choice by the means of rewards and punishment, measuring minimum wages scientifically from the fact of economic transition. The innovation of this paper is clicked as follows:1.Based on gray system theory, this paper makes relational analysis of T—Mode on minimum wages' influencing factors using data of Beijing, and reveals related indicators the government taking into account.2. Based on general evaluation rules appropriate to public choice of minimum wage system, this paper analyzes the non-efficiency performance in the public choice of the minimum wage system, and indicates the transitional mode based on hearings.3.This paper defines concepts of basic value and decent value of minimum wages. Based on Martin Method, this paper studies the measurement and dynamic adjustment of basic value of minimum wages. Based on average wages, this paper analyzes the measurement and dynamic adjustment of decent value of minimum wages.