Study On Wage Determination Of China

China’s economy is developing rapidly and continuously, with high-speed growthof the total of economy, employee salary level also in continued improve, but the levelis low on the whole, and the main income of Chinese employees is wage, and lowwage level led to low income level, so the consumption level of residents is limited,and it does not conducive to economic growth.The problem of wages is a global economic issues, and many economists hasresearched from different direction for many years, collective bargaining theory isbased on institution theory, but this article is based on Clark’s Marginal ProductivityDecided Theory and Marshall’s Supply and Demand Balanced Decided Theory, and Ibelieves that market supply and demand of labor decide the wage, labor productivitymakes great effort to the demand of labor, the theory of collective bargaining is basedon supply and demand of labor and labor productivity.The main purpose of this study is to recognize the decisive factor affecting thelevel of wages with the in-depth study of theory, so that in the search for solutions tothe root causes of the problem of wages, the current status quo of China’s wage leveland the status of the basic factors that affect the level of wages could be showedspecifically by empirical analysis, and by measuring the degree of correlation betweenthem to comprehend the reality, it provides the basis for solving these problems andthen from the basis of the theoretical and empirical analysis to find ways to solve theproblem of low level of wages. The main purpose of this research is to enable thereader to understand the basic wage factor is the relationship between labor supplyand demand, as well as labor productivity levels. Through the policy introduction ofthis article, it’s useful to raise the level of workers ’ wages gradually, and to promoteeconomic growing continuously and rapidly.This innovation of this research is combined wage decided theories of Clark andMarshall, proved the relationship between marginal productivity and wages, that islabor of marginal productivity decided needs price of wage, which is the one of important factors that decided wage level. This article listed related data of1996-2011in China, pointed out declined trend of current labor supply growth, wage level ofgrowth and productivity growth does not synchronization, There is a huge gap inwage level and productivity level of China and United States, wage negotiationsystem is built on the basis of relations of supply and demand of labor and laborproductivity levels.Through theory and empirical research of this article, it pointed out that the wagelevel does not grow in step with labor productivity, there is great gap between wagelevel and productivity in different regions, and has proved productivity has quitegreat effect on wage level, labor productivity changes1%will caused wage levelchanges0.6952%with the same direction, per capita、 human capital and technologyare important factors that effecting labor productivity. In order to raise wage level, thegovernments and enterprises should take measures to improve labor productivity, suchas increased education inputs and capital inputs, encourage innovation and improvethe distribution system.