| The nature of Minimum Wage Regime is to lift the wage of low-income labors above equilibrium level, therefore to improve the income situation of those. Now, China is at the stage of transformation with labor force over-supply, the enforcement of Minimum Wage Regime will be helpful to protect employee's rights, pushing forward the development of harmonious society. But the Minimum Wage Regime is also a double edge sword, people have been arguing about its effects on employment since its emergence. This paper took Chongqing as an example, after analyzed its current situation of Minimum Wage Regime, we took an empirical study on its controversial employment effect.Firstly, this paper reviewed relative theoretical models and empirical studies, to have a whole understanding of current researches and gain some enlightens. Then analyzed Chongqing's Minimum Wage Regime current situation, and had four main factors which affect Minimum Wage standard the most by Grey Method, that is mean wage, consumption of per capita, GDP of per capita and disposable income of per capita. Secondly, we respectively probed the relationship between these factors and the minimum wage standard, to provide reference for government decision. After that, by Cointegration Theory, we took an empirical study on Minimum Wage's employment effect. Finally, on the basis of minimum wage current situation and empirical study, we made some advice for Minimum Wage Regime.As the results show, the minimum wage standard of Chongqing is lower than its theoretical standard, its adjustment doesn't match the growth of mean wage, consumption of per capita, GDP of per capita and disposable income of per capita, and it adjusted every two, this frequency is lagged behind the development of the economy. The minimum wage standard of Chongqing doesn't have any negative effect on employment; On the contrary, it has some positive effect, though not obvious. The government should recognize this effect correctly, and forge an adjustment regime which match the economic growth, and standardize the adjustment frequency. |
