China’s Minimum Wage System And Employment Effect Analysis

The minimum wage system is the state intervention in the labor market operation is a kind of important means. The minimum wage system, is the national legislation through certain procedures, to ensure laborer in the performance of the necessary labor obligations for maintaining the appropriate labor reproduction of the minimum wage incomes in a legal form. Its center purpose, is to ensure that the workers get the minimum wage can meet the basic survival needs of the family members. The production needs of the country and its economic and social development to adapt.Our minimum wage system suitable for our country enterprise with foreign investment, including all of the enterprise. To date, China has30provinces, autonomous regions, municipalities directly under the central government officially announced the minimum wage standard, the establishment and implementation of the minimum wage system.The implementation of the minimum wage system, to promote the development of labor market, make wage reform legal system, strengthen enterprise wage income the macroeconomic regulation and control, to protect the legitimate rights and interests of enterprise employees to stop down wages, play an important role, overall effect is good.By setting up a minimum wage system to protect low-income employment disadvantaged groups already became the various countries’ government practices. Minimum wage standard every time raised economic circle will cause the dispute. According to the traditional labor economics theory, in a perfectly competitive labor market, raise the minimum wage standard will have a negative impact on employment, But in an existence the buyer monopoly labor market, if the initial minimum wage is low, the minimum wage standard for the improvement of employment will have a positive impact.Overall, various economic theory to the influence of the minimum wage are not consistent with the prediction.While in a foreign country for scholars to raise the minimum wage employment effect of empirical study, due to use a different tool methods, it is concluded that the results of the study is endless also and same.In recent years, because our country minimum wage standard adjustment frequency and amplitude are increased, and with the economic growth mode transformation, economic structure adjustment, urbanization and employment pressure, minimum wage increase possible influence caused the attention of more and more theoretical circle, especially for the minimum wage employment effect research. Because of China’s urban labor market has not yet been fully mature, minimum wage in China play a role of mechanism and path has its own characteristics. Therefore, according to the actual situation in China, the study of the minimum wage standard to improve employment effects, and proposes setting reasonable minimum wage standard and promote employment supporting policies to appear particularly important.The minimum wage employment effect is labor economics in most controversial one of research topics, based on the carding minimum wage employment effect theory and empirical research, based on the use of China’s1995-2010national29provinces, municipalities directly under the central government, autonomous regions annual panel data (due to Tibet, sichuan and chongqing’s minimum wage data is incomplete without on).Applied econometrics empirical research methods, the use of cross section data weighted way to eliminate section heteroscedastic, according to a set of theory model of generalized least square to return, to the China labor market minimum wage employment effect points time, points area, to divide the inheritance to the analysis of the system. The time is divided into1995-2003and2004-2010, the area is divided into the eastern, central and western China, the industry is divided into primary industry, secondary industry and tertiary industry. For each regression results are the results analysis, and gives the comprehensive analysis and the countermeasure analysis.At the same time, in this paper, the typical developed countries the United States and a typical developing country Mexico’s minimum wage and employment effect has thorough research, from the lowest salary employment effect mechanism of action and function path method to carry on the analysis, analysis of different countries minimum wage employment effect exist difference and the reason of difference exists. In order to China’s minimum wage system formulating and perfecting the help.At the end of the paper in the related theoretical research and empirical research, on the basis of introducing foreign experience and lesson, aiming at the improvement of the minimum wage system, puts forward some policy Suggestions. China’s minimum wage policy formulation and adjustment should be in economic development and economic reform in, combined with the employment situation of the development of the phase and coordination, so that we can guarantee the minimum wage system function effect. And won’t give employment cause greater pressure, so as to realize the rights and interests of the laborer of safeguarding and promoting the employment goals. In the reference of foreign experience, and at the same time, should fully combined with China’s national conditions, makes the corresponding system arrangement. And from the minimum wage system so as to the research on China’s economic growth mode transformation, economic structure adjustment, as well as the urbanization process measures are original new train of thought.