Empirical Study And Impact Of Label Of Chinese Manufacturing Wages Influenced By Import Competition

Based on the H-O-S theory, two oligopoly model and theory of the three product-element model, this article explores the relationship between import and manufacturing wages from both theoretical and empirical aspects. It reveals the relationship between import competition and manufacturing wages under the competitive effects to domestic enterprises through imported goods. Firstly, the relevant literature about imports and earnings are combed systematically. Then this paper uses 2000-2012 industry data merging with the custom’s database data to make a statistical description on industry import penetration and earnings, analyze the relationship between imports and earnings of Chinese manufacturing industry.Next, the research constructs the empirical model based on the above theory models. Wage impacts include three aspects. The first is sub-sectoring wage trends, and the second the wage differential between industry segments. The last is the skilled labor and unskilled labor wage difference in the industry. To study the effect of different imported products of the industry wage, this paper classifies the goods into intermediate goods, capital goods and consumer goods according to the BEC. Besides products from different sources possessing inconsistent technical content, so they are also assorted into high-income countries imported products, middle-income countries and low-income countries imported products. The results show that:import competition inhibits the growth of the industry total earnings and expands inter-industry and intra-industry wage differentials; various imported products have different effects and the imports of intermediate from middle-income countries have Maximum impacts. Finally, on the basis of summary of findings, we put forward policy recommendations on improving wages, reducing differentials in industries and increasing employment.