The Effects Of China's Minimum Wages On Market Labor Supply

The minimum wage system is an important system to protect the basic rights and interests of workers in China.Although the original intention of the minimum wage system is toprotect the vulnerable groups in the labor market,but more and more empirical evidence shows this system let part of the vulnerable workers bear the negative effects,resulting in the phenomenon of backfire.Implementation of the minimum wage system and the implementation of the tax system are similar to some extent,etc.decision behavior on the labor market may bedistorted to some extent,and therefore there is a system setting between adjustment of workers' welfare improvement and violations of the trade-off.In the theoretical level,whether there is necessary to implement the minimum wage system,and the implementation of the system of labo rmarket what will produce what kind of impact are always under debate in the past 30 years and have not yet reached agreement.Different scholars from different national characteristics,the system environment and labor supply and demand characteristics,and other aspects of a number of attempts to explore,to provide a variety of empirical or theoretical level of evidences.In this context,Chineses cholars have begun to try to analyze and evaluatethe impact of the minimum wage system on China'slabo rmarket.With the structural changes in China'slabor market in recent years,this kind of research hasreceived more and more attention froms cholars.In practice,China acknowledged that old China approved 1930 ILO No.26 of the formulation of the minimum wage determination method the Convention since 1984,and gradually began to star tdomestic minimum wage system frame construction and in 1994 officially in the nationwide promote the establishment and implementation of the minimum wage system,and until today in a process of continuous improvement.Since 2008,the financial crisis has highlighted the practical significance of the minimum wage system in China,thsudraw more and more attention on this subject.Domestic scholars on the study of the effect of the minimum wage in China is fragmented,and there are no uniform conclusions so far.The research on minimum wages'effect focus on the impact of minimum wage on employment,and the relevant literature is rich,but it is different from the perspective of Western studies.Some focuses on the different influences on the implementation of the minimum wage system of attention in various areas of decentralized decision-making system,and some else analyzed the different industries affected by the minimum wage effect size.Since the reform and opening up,China has gradually changed the old level wage system under the planned economy system.Mainly because of the rapid development of non-public economy,the coverage grade wage system shrinking,many private enterprises and individual industrial and commercial households,labor income can not be guaranteed.In addition,the level of wage adjustment is too slow,can not keep up with the pace of the people's living standards improve,the wage adjustment is even more necessary.Therefore,it is imperative to develop a set of minimum wage standard which can meet the needs of economic development and the improvement of people's living standard.Unlike most developed countries,so far,the minimum wage in China has not established a unified national criterion,which was replaced by the provincial government in determining the minimum wage standard of the administrative area,"minimum wage",clearly pointed out that the provinces can according to the situation of economic development in different regions of the province to implement a minimum wage the difference of the standard.For the minimum wage,there is still insufficient enforcement of the problem,should be more stringent minimum wage into the legal system,strengthen law enforcement efforts.Only in this way can we effectively improve the welfare of workers,and better safeguard the legitimate rights and interests of workers.At the same time,increase the minimum wage efforts to enhance the awareness of the rights of workers,the implementation of the minimum wage plays a good supervisory role,so that the minimum wage to better safeguard the rights and interests of workers.Even so,how does the implementation of the minimum wage system in China have an impact on the labor market,is this insititution protect of the basic rights and interests of workers and promote the employment of workers?Or reduce the employment opportunities of workers and damage the basic welfare of workers to a certain extent?At present,the academic research on the history of the minimum wage system in China,the formation mechanism,the comparison between China and foreign countries and the experience and soon,have yet to be improved.This aspect of the study aill also for the practical level of policy formulation,assessment,adjust ment and implementation of a useful reference.This paper intends to assess the policy of every provincial unit since 1994 in China.The cut in point is the analysis of the number of workers.Majo rattempts to answer the following three questions:First,the level of China'sprovincial units in the level of the minimum wage setting and adjustment of the labor supply decision will produce what kind of impact?This involves the analysis of the impact of minimum wage static and dynamic.Second,what is the intrinsic conduction mechanism leading to these effects?Again,how to minimize the negative impact on workers and the market in the process of setting and adjusting the minimum wage system?As China's economic development has a significant spatial heterogeneity,the whole sample analysis to a certain extent,ignored the heterogeneity between the local.Therefore,this paper will first analyze the problem from the whole and local level.In addition,the labor market supply and demand of the two sides to comply with the minimum wage and understanding of differences,the minimum wage has more significant dynamic characteristics.Specifically,the minimum wage of the formulation and implementation of between there is a time lag,and some enterprises may will choose to violate the minimum wage system constraints,so workers on the market for a minimum wage provisions and enforcement has learning effect,and to changes in the minimum wage will gradually produce the desired effect,and according to these two effects appropriate adjustments to their labor supply,thus avoiding the potential risk of unemployment in a certain extent.Therefore,this article will be mainly from the static and dynamic analysis of two levels.In this paper,by using the 2000 census 0.95‰ sampling data and matching data of Chinese cities,from two aspects:absolute and relative,minimum wage set is studied and the effect of changes of migrant workers labor supply.This paper found that the minimum wage set crowding out of migrant workers labor supply,the influence degree of about 0.06 or so.In addition,changes in the minimum wage is crowding out,influence degree which is about one over ten of the former.The structure of this paper is as follows:the first part is the introduction,which explains the background,content,literature review,technical route and innovation of this paper.In the second part,the part is about the basic theory of the minimum wage,and the design frame work of the minimum wage system is analyzed in the third part.In the fourth part,according to the current situation of labor market inChina,the minimum wage system in China is analyzed.In the fifth part.In this paper,we analyze from both global and local levels respectively,China's minimum wage standard setting and other aspects of the content is also described here.And choose a comparative study of specific countries or regions.Since the implementation of the minimum wage of China's impact on the extent and impact of the way,is also the focus of the investigation of the sixth part.This paper intends to use the 2000 census 0.95 per thousand sampling data and the prefecture of matching data,China's prefecture level minimum wage on the labor supply of labor force flow effect analysis,and tries to reveal the internal mechanism of the influence of.The last is the conclusion of this paper and policy recommendations.