The Research On The Minimum Wage System's Effect On The Manufacturing Migrant Workers' Employment

In China, migrant workers are low-income groups, according to many statistical data, most of migrant workers are employed by manufacture sectors. As a system for protecting low–income groups, the minimum wage system has existed 16 years already. Recently, with the improving economical conditions, the minimum wage is increased in many provinces. However, the increasing minimum wage has either positive or negative effect on the amount of migrant workers in manufacturing industry,this is origin of the dissertation.On the basis of looking back on the theoretical and empirical study at home and abroad and according to the reality in our country, I chose six provinces with the largest number of manufacturing of peasant workers: Jiangsu .Zhejiang. Guangdong. Fujian. Shandong and Liaoning. and explained four influential variables: per capita GDP, minimum wage, average wage of manufacturing employees, agricultural income of peasants. With the analytic method of panel data, I use f-test and Hausman test to construct a random effect model, to study the effect of minimum wage on the employment of manufacturing peasant-workers.The final study believes: the minimum wage system has positive effect on the employment of manufacturing peasant-workers. I also analyzed the necessity of minimum wage system implementation for the lower labor distribution rate and labor cost, the minimum wage system has played an important role in either the individual labor or better development of entire economy. Therefore, we should set reasonable minimum wage standards and adjust it accordingly. Improve the legislative level, strengthen labor inspection, take various measures to promote more employment of migrant workers.