A Thesis On The Analysis Of The Minimum Wage Standard In Hubei Province

The system of minimum wage is designed to protect the basic rights of the most labor forces, aiming at giving lowest but enough income to those workers to survive after they provide basic and normal amount of labor. With the constant progress of the society, it should be guaranteed that the working people who contribute most to the social development can share the fruit of economic progress, which will finally promote the economic developing healthily and sustainably. In this situation, the policy of minimum wage plays an important role, because a reasonable and appropriate standard of minimum wage will ensure the policy implements effectively, and will not only reduce the loss of social welfare as much as possible in the sub-optimal conditions but also maximize the effectiveness of the policy, which is also the ultimate goal of the implementation of this policy. In conclusion, it asks for higher requirements to the ruling ability of the current government, who should consider both fairness and efficiency in making policies. The minimum wage should be set high enough to satisfy the material consumption of the low-income workers to support his or her family, but not too high to have bad influence on the economy or disturb the order and efficiency of social operation. So, in order to balance the relationship between both things, it is really important to set an appropriate and reasonable standard of minimum wage, which should be not too high or too low, to achieve the goal of the system.The system of minimum wage has been carried out in Hubei province since1995, during this period; it has changed nine times from200Yuan a month in1995to1300Yuan a month in2013. This article summarizes and analyzes what kind of achievements has been made at the current stage and how the changing trend is in the process of development. Then, this article continues to discuss questions about determination and adjustment of reasonable standard, whether it is enough to meet the needs of workers to live a life, or whether it can match the current level of society development.Based on this, this article collected all kinds of economic statistics in Hubei province from1995to2012. As is known to us all, the state stipulates some influence indicators of minimum wage’s policies in the documents, and the local governments should choose relevant factors in making policies with reference to the documents above. In the premise, we can use grey relational analysis method to find a few the most significant ones from many influencing factors in Hubei province. Then we use econometric regression model to build a regression equation among each variables to find their relationship, so that we can forecast the change of the minimum wage in the future. After comparing the predicted value with the real ones, we can come to the conclusion whether the minimum wage in Hubei province is high, low, or at a reasonable level. Finally, we get a conclusion that the minimum wage is a little lower in Hubei province, with the practicable analyzing of adjusting the minimum wage in further, we will give some corresponding recommendations against the problems existing in the current the system, hoping to provide some useful opinions to the government in Hubei province.