Jiangsu Province, And Their Wages Growth Mechanism

In recent years, Jiangsu Province's economy has kept increasing rapidly, and a new period of developing at top speed will come. The increase of staff wage will affect the pace of economic development. How to build a rational staff wage increase level to reach harmonious society is becoming a hot topic of government and researcher.The methods of combining qualitative and quantitative are used in this paper. Based on the recalling of wage decision theory and practice in western countries, and then analysis the reformation of China's wage policy process, referring to result of others' research on staff wage increase, we summed up the standard wage decision factors. According to economic data in Jiangsu Province from 1990 to 2006, we use statistics and measurement tools for empirical analysis of factors. Then come to a conclusion: the increase of staff wage in Jiangsu Province is mainly decided by the level of economic development, and it can be explained by these key factors for a long-term stability. China has issued a series of wage policy since reform and opening-up. Through studying the actual situation in Jiangsu Province we found that these wage policy and the reform of corporate affect the staff wage increase in varying degrees.Based on the conclusions of theoretical and empirical analysis above, we try to build the mechanism of staff wage increase which is determined by economic development level, promoted by marketing reform and adjusted with government regulation. Finally, we offer some reference for making perfection of this mechanism.