Comparison Of Labor Cost Of China-US

Since the implement of Reform and Opening-up Policy in 1978, the economic condition in China has made a great progress. The major indexes such as GDP, national income and labor productivity have grown rapidly. Our living standards have had an earth-shaking change. However, behind the gratifying achievement, we have to face to the fact that as a developing country, there is still a large gap between China and developed countries, especially in the labor cost aspect.With the development of globalization, production elements flow quickly throughout the world. The integration process has become more and more evidently. Thus, as the one of the most important components in the above factors, labor force has been the focus in the public. On the one hand, in terms of the manufacturer, labor cost is an important part of the producing costs. On the other hand, in the view of the normal workers, the labor cost is equal to their labor remuneration, namely wage or income. Therefore, whether it is possible for us to find a reasonable price of labor force so as to make balance between the manufacturers and the laborers--maximizing the manufacturers'benefits and meanwhile let the workers feel satisfying with their salaries is an issue in the academic areas.This article will mainly take America as the research object and analyze the major indexes such as GDP, productivity, income, inflation and so on. Thus, we can find how and when China could catch up the labor cost level with America.The article will be divided into five parts. The first part will mainly discuss the research background, the significance and the methods it adopted. In the second part, the paper will make a comprehensive discussion of the existing research achievements from both domestic and foreign scholars. In the beginning of the third part, the article will raise two contradictions--the low labor cost asked by manufacturers against the high salaries required by laborers and the rising labor cost against the increasing inflation pressure. Then, the author will also put forward his hypothesis and reasons depend on the data of the two countries' labor cost in the past decades that the labor cost between China and USA will be in the same level in the future. In the fourth part, the author will prove the above hypothesis depends on the data analyzing of the two countries and give the conclusion that it is reasonable for China to catch up with USA in labor cost in 35 to 40 years. Finally, the author will give some policy proposal related to the labor problems that happened in China.