Low-end Labor Market’s International Alternative And Labor Shortages Under The Minimum Law

Nearly 30 years, China’s economic growth has been particularly successful.In recent years, however, as the environment and resource cost gradually reached to the up limit, the original growth model in our country has come to an end. As the finance minister, Mr Lou said during a speech in THU,the possibility of China’s current economic condition falling into the "middle-income trap" is to half.In addition, in recent years our country increases the frequency of minimum wage standard quickly,under the conditions of minimum wage law constantly adjusts,why our country appears the shortages of the low-end labor market?Theoretically, wages in the minimum wage law should be higher than the market equilibrium wages, under the constraint of minimum wage legislation, demand for labor is less than labor supply, labor shortages will not exist.But in fact, China’s minimum wage standard is under this kind of market equilibrium wage level,it does not restrain this kind of market wages.Can we solve the problem of labor shortages by raising wages?This article will explain the issue by introducing external competition and capital transfer of goods.This is the innovation of this article.The interpretation of this perspective can provide theoretical support for the transformation of the pattern of economic development policy in our country at present,and policy suggestions for rural labor force to cities further. The conclusion of this paper may provide help for the smooth transition of our country economy.The article structure’s arrangement is as follows:The first chapter is introduction.This chapter mainly described the research background of this article, including the low-end labor market present situation, the implementation of the minimum wage and capital transfer situation in our country, etc.Then,the chapter introduced the research purpose and significance of this article, the research contents and methods,innovation and lack of research, etc.The second chapter is literature review.In this chapter,in view of the problem of "shortage of migrant workers",the existing documents will be divided into the debate about the "lewis turning point" and the shortage of migrant workers cause- based on the premise that exist a large number of surplus rural labor, etc,and are summarized in the end.The third chapter is the theoretical part of the article.This chapter firstly used Mr Stiglitz-Salop’s departure model to analyze the impacts of raising the minimum wage standard on migrant workers turnover rate.Then the use of text description method is proposed to introduce the main theory:the transfer of capital for low-end labor market.The fourth chapter is the empirical analysis.This chapter firstly introduced the data sources and made some basic descriptive analysis,and then established the capital transfer and low-end labor shortages variables of multivariate regression model,and then using the method of empirical analysis examined the theory in this paper.The fifth chapter is this article’s research conclusions.The sixth chapter is this article’s policy suggestions.This paper comes to the following conclusions:1、Transfer capital level and labor supply security level shows negative correlation,that with the increase of total capital transfer, low-end labor market’s shortages will be more and more serious.This result suggests that, since 2003, the rapid growth of the capital transfer appears at the same time with the phenomena of "shortage of migrant workers" is not an accident, the theory of internal relation is between them.2、Levels of investment in fixed assets and labor supply security levels are positively correlated,that the higher the level of investment in fixed assets,the more fully the labor supply.Possible explanation is that,over the past ten years of investment in fixed assets on the one hand, pulled the economic growth, on the other hand freed a lot of rural surplus labor.From this perspective,the past investment in fixed assets is successful to a certain extent.However, in recent years our country’s resources and environment constraints are close to or reach a high ceiling and labor costs rise, relying on the practice of investment is unsustainable.3.. Levels of consumption, export, utilization of foreign capital and labor supply security levels show a negative correlation,that the higher the levels of consumption, export, utilization of foreign capital,the more serious the labor shortage.This result shows that:China should further expand the opening up and utilization of foreign capital, and should pay more attention to the proportion of consumption and exports in GDP, so as to create more jobs for domestic workers, to further promote them to cities.However, as many articles, data shortage is a major bottleneck in this paper. So far, there is not a special statistical report on foreign divestment, detailed foreign divestment data is hard to find.Due to the lack of the provincial data, this article can only use the annual national data to analyze, sample size is insufficient.With the constant improvement of the data in the future,if we can establish the provincial panel model,this paper’s theory will be more persuasive,it should be this article’s direction of the efforts in the future.