Rational Analysis On The Minimum Wage Of Beijing, Tianjin And Shanghai

Minimum wage legislation and development has a difficult journey in the word with a history over100years. In China, as a new wage policy, it has been introduced under the guidance of the socialist market economic system, and it borrowed this experience from the market economy countries wage regulation and management, and implemented in the framework of Chinese characteristics. The minimum wage legislation and practice in most countries also provides rich experience for the implementation of China’s minimum wage system which is gaining ground for nearly two decades and protects the legitimate rights and interests of workers to a certain degree.A large number of theoretical and empirical studies prove that scholars do not reach a unified conclusion in many aspects of the minimum wage. That the different impacts of minimum wage in different regions exist means the research on the minimum wage in different regions has a great significance. As the country’s political, economic and cultural center, municipalities directly under the Central Government in eastern region attract a large number of migrant labors, and there is the complex structure of the labor force. That creates a strong demand for the minimum wage system. Therefore investigating the rationality of the minimum wage system of municipalities directly under the Central Government in eastern region has important practical significance. In this paper, I studied the rationality of the minimum wage system of Beijing, Tianjin and Shanghai municipality directly under the Central Government through the use of statistical analysis and empirical analysis from three aspects. Based on the research of the domestic and foreign minimum wage and the objective analysis of the current development situation of the minimum wage system of Beijing, Tianjin and Shanghai municipality directly under the Central Government, this paper firstly explored the reasonable of the influence factor of formulating and adjusting the minimum wage standard by using the connection analysis from the Gray System Theory. Then, the paper analyzed the reality of the minimum wage standards related indicators by using the data statistics method. Finally, the paper analyzed the employment effects of the minimum wage system by using the multiple regression statistical method.The conclusion is that, the rationality of the minimum wage system of Beijing, Tianjin and Shanghai municipality directly under the Central Government has different result from the perspective of the different aspects. For the influencing factors, it is reference to the relevant provisions of the state. The difference of the rationality consists in the size of the correlation. For the relevant indicators, the overall condition of the minimum wage standard in Beijing is better than that in Tianjin and Shanghai. But from an international perspective, there is a chasm between Beijing, Tianjin and Shanghai municipality directly under the Central Government and the international average in the minimum wage standard. For the employment effects, the minimum wage in Beijing and Shanghai produces a positive effect on employment, while the minimum wage in Tianjin have a significant negative effect on employment. There is regional difference on employment effects of the minimum wage.