Research On Economic Effects Of Minimum Wage System In China

In order to protect the legitimate rights and interests of workers,improve the production efficiency of enterprises,reduce the income gap and reduce the degree of income inequality,the state has introduced a minimum wage system,hoping to intervene in the labor market through institutional means,make up for market failures,and maximize social welfare.However,the complexity of reality often distorts the original intention of the policy,the rising costs of enterprises,the infringement of labor rights,and the growing income gap,leading to questions about the effectiveness of the minimum wage system.Before thinking about how to design the minimum wage system,it is necessary to scientifically and accurately study the economic effects of the minimum wage system and clarify the mechanism of the minimum wage system in order to put forward targeted policy opinions.Therefore,this article focuses on the economic effects of the minimum wage system,and studies the real impact of the minimum wage system from the perspectives of labor supply,labor demand,and income distribution effects,and proposes targeted and feasible policy recommendations.Based on the existing theories and research results,combined with Chinese reality,this article explores the economic effects of the minimum wage system,and mainly completes the following research contents:First,an explanation of the emergence,development,and status of the minimum wage system.First,clarify the purpose of the minimum wage system.The purpose of the state's implementation of the minimum wage system is to protect the legitimate rights and interests of workers,reduce the income gap,and promote enterprise productivity.Secondly,sort out the development process of China's minimum wage system.The development process of each stage is elaborated from budding,standardizing to perfecting.Third,summarize the basic content of the minimum wage system.Including the definition,measurement,adjustment and supervision of the minimum wage system.Then,it makes a basic statistical description of the minimum wage standard,labor income,employment and unemployment,corporate profits and poverty,and analyzes the evolutionary trend of the relationship between the minimum wage standard and the above aspects.Finally,it analyzes the problems existing in the implementation of the current minimum wage system.The content of this part provides realistic basis for the theoretical analysis below.Second,related research on the impact of the minimum wage system on labor supply.From the perspective of labor supply time and labor income,this paper studies the impact of the minimum wage system on the labor supply side.The first is the study of the minimum wage system and labor supply time.First of all,based on theoretical analysis,this article believes that the impact of the minimum wage system on labor supply time is uncertain.Secondly,using China 's Household Income Survey data(CHIP),using discrete labor supply model and continuous labor supply model to conduct empirical tests,it is found that the increase in the minimum wage can reduce the level of utility that leisure workers bring to men and increase the labor of men Supply time.For female workers,theempirical results are completely the opposite.With the increase of the minimum wage standard,the labor supply time of women will be significantly reduced;the second is the study of the relationship between the minimum wage system and labor income.First,using the labor extraction model,it is theoretically pointed out that the minimum wage system can increase labor income.Subsequently,using the Chinese Household Income Survey data(CHIP),the theoretical analysis was verified through empirical research,and it was found that the minimum wage standard had a significant positive correlation with labor income.The minimum wage system can increase the income of workers,especially low-income groups.Third,related research on the impact of the minimum wage system on labor demand.By examining the behavioral response of enterprises to the minimum wage system and changes in labor productivity,the effect of the minimum wage system on the labor demand side is studied.As for the research on the economic behavior changes caused by the minimum wage system,first of all,theoretical analysis points out that enterprises facing the minimum wage system will have a variety of behavioral responses.In order to avoid the rising costs brought about by the minimum wage system,companies may directly reduce the number of labor employed,reducing management costs,employee benefits and employee wages.It is more likely that production factors will shift,and more investment in fixed assets and R & D investment will be made to improve labor productivity.Secondly,using the data of industrial enterprises above designated size to conduct an empirical test on various possible responses of the enterprise,the results show that with the increase of the minimum wage standard,the enterprise has indeed reduced the number of labor employed,and the management costs,employee benefits and wage expenses of the enterprise have also increased.reduce.The company reduced its investment in fixed assets,but increased its R & D investment.The impact of the minimum wage system on the labor productivity of the company is also the focus of research.The double-difference model is used to test the changes in the enterprise's labor productivity.The results show that the minimum wage regulations Implementation has enabled companies to increase labor productivity.Fourth,related research on the income distribution effect of the minimum wage system.Study the policy effects of the minimum wage system from the perspectives of poverty reduction and income inequality.For the poverty reduction effect of the minimum wage system,first,based on the FGT index,construct a quantitative relationship between the minimum wage standard and the breadth,depth,and intensity of poverty,and point out that the minimum wage system can achieve the poverty reduction effect.Secondly,using the Chinese Household Income Survey Data(CHIP),it is empirically found that the minimum wage standard and the three poverty measures all show a negative correlation,and the minimum wage system has produced significant poverty reduction effects on Chinese residents.At the same time,with regard to the phenomenon of working poverty in urban families in recent years,empirical analysis shows that an increase in the minimum wage standard can reduce the probability of residents falling into working poverty,andprove the poverty reduction effect of the minimum wage system from another perspective;From the perspective of the study of system and income inequality,this paper finds that there is a significant secondary relationship between the minimum wage standard and the income inequality indicator,which has a U-shaped characteristic,which means that an excessively high minimum wage standard will widen the income gap and produce counterproductive results.Policy effects.Fifth,conclusions and policy recommendations.Based on the existing theories and research results,combined with China's real problems,through theoretical analysis and empirical tests,this paper demonstrates the impact of the minimum wage system on labor supply and labor demand,and its income distribution effect.This paper finds that the minimum wage system significantly affects labor supply time and increases labor income.Faced with an increase in the minimum wage standard,enterprises will have various types of behavioral responses,such as reducing the number of employees,reducing management costs,and increasing investment in research and development.The minimum wage system has significantly improved the labor productivity of enterprises.In addition,the minimum wage system also has a significant effect of reducing poverty and has also played an important role in narrowing the income gap.According to the research findings in this paper,combined with the current status of the development of the minimum wage system,specific policy recommendations are proposed,such as continuing to strengthen the construction of minimum wage-related systems and establishing a feedback mechanism on the effects of the minimum wage policy.