Minimum Wage, Training And The Wages Of Migrant Workers

With the further promotion of urbanization process, migrant workers’ low income level draws the public attention once again. Its main reason is due to migrant workers’ low human capital level and their slow wage increase rate. Therefore, the minimum wage system is needed to guard migrant workers’ basic rights and interests, and they need receive training to increase their human capital level to realize the increase of their income.This thesis sorts out the relative theories, methods and the development of empirical research in terms with the training effect of minimum wage systems and the income effect of the training both home and abroad. By reviewing relative literature, it points out that due to the lack of micro-data, there are comparatively fewer researches on the training effect of minimum wage systems and there exist greater differences between the research results on the income effect of migrant workers’ training and the actual empirical results.This thesis is based on the panel data form the data matching of 2007 and 2008 research statistics published in Rural-Urban Migration in China(RUMIC) of China Household Income Project(CHIP). It studies the minimum wage systems’ and training’s influence on migrant workers’ wage.First, it explores the training’s influence on migrant workers’ wage level. This thesis uses the nearest neighbor matching method of propensity score matching to respectively analyze the migrant worker training’s short and long term effect. As the studies show, the short term effect of older generation of migrant workers without senior high school diploma(refereed as workers without higher diploma in later discussion) is significantly positive while the long term effect of male migrant workers without senior high or higher school diploma and the newer generation of migrant workers with senior high school diploma(refereed as workers with high diploma in later discussion) is significantly positive. The results show in short term the training promotes the increase of the wage level of the older generation migrant workers with high education level while in long term it promotes the wage increase of male migrant workers with low education level and newer generation with higher education level. Besides, the studies also show receiving higher education promotes the training’s influence on female migrant workers’ wage level.Meanwhile, compared with the training’s short term effect, the long term effect for migrant workers is far more significant, which means there exists some time delay in the training’s influence on migrant workers’ wage level.Second, this thesis analyzes the minimum wage systems’ influence on the migrant workertraining. Based on the penal data, it adopts training equation to control individual heterogeneity and Logit Model to analyze the minimum wage systems’ influence on the migrant worker training. As the research results show, the increase of minimum wage level has significantly positive influence on the training received by male migrant workers without senior high school diploma and female migrant workers with senior high school diploma, among which the increase of minimum wage has significantly positive influence on the training received by male migrant workers without senior high school diploma and female migrant workers with senior high school diploma. As the results show, the increase of minimum wage level helps male migrant workers without senior high school diploma and female migrant workers with senior high school diploma receive training and it also helps the newer generation of male migrant workers without senior high school diploma and the newer generation of female migrant workers with senior high school or higher diploma receive training. It’s also found that the increase of age lowers migrant workers’ inclination toward receiving training while higher education level promotes their willingness to receive training and living in eastern China increase the willingness of female migrant workers without senior high school diploma to receive training.In the end, based on the training effect brought by of minimum wage systems and the income effect by training, this thesis studies the minimum wage’s short and long term effect on migrant workers’ wage level. And the results show that the minimum wage system has significantly positive short term effect on female migrant workers’ wage level and significant positive long term effect on the newer generation of female migrant workers with higher education level as well as the newer generation of male workers without higher education level.The results show, the increase of minimum wage promotes the income of females with higher education level in short term while in long term it increases the income of both the newer generation of females with higher education level and males without higher education level.The research of this thesis helps deepen the understanding on the decision mechanism of migrant worker wage level as well as the design and evaluation of our country’s minimum wage systems and training policies, which possesses certain theoretical and practical significance.