Labor Protection, Labor And Employment And Wages

This essay mainly studied the impact on wages and employment of labor protection both in theoretical and empirical methods. In the theoretical part, the Labor Protection Level which workers actually enjoyed was quantitatively divided into two factors:the Labor Protection Rate as a policy variable and the Enterprise Compliance Index as a variable determined by the enterprise. These two factors were then introduced into the enterprise's Cobb-Douglas production function and cost function, to get an optimal planning solution. Conclusions were:in the short term, labor protection enhancement would reduce the employment, while the impact on wages varied under different conditions; in the long run, deduced from the expanded model, while the boundary condition met the equilibrium solution, wages and employment would not be influenced by labor protection. Based on the model, using the Yangzhou survey of enterprises and workers from 2006 to 2008,an empirical panel-data analysis was conducted, which showed:the promulgation of the Law of The People's Republic of China on Employment Contract did increase the wages significantly; there was no evidence of any impact on total employment, however, there was evidence of employment structure change with the proportion of personal services dispacth remarkably increased.