A Study On The Moderation Level Of The Minimum Wage In Shanghai

It is announced that the minimum wage in Shanghai changed from the original RMB 1820 to RMB 2020 On April 1 2015. Since the minimum wage system established in 1993, the Shanghai minimum wage has been at the leading level. A moderate amount of minimum wage standard, can guarantee the worker’s income level, and will not have extrusion effect on employment levels. It has important practical significance to measure the moderate level standard of Shanghai minimum wage.Based on the summary of relevant research at home and abroad about the minimum wage standard, this paper analyzes the present situation of the national and Shanghai minimum wage standard and calculates the moderation of the minimum wage of Shanghai using empirical data analysis. ELES model is used to calculate the moderate level of Shanghai minimum wage standard, and it is concluded that the development level of Shanghai’s minimum wage standard is relatively moderate.This paper uses the regression method to analysis of the employment effect of Shanghai minimum wage to judge whether the minimum wage in Shanghai is on the high side, and uses comparative method to analysis security level of the minimum wage in Shanghai to judge whether the minimum wage in Shanghai is on the low side. By analyzing the Shanghai minimum wage standard, it comes to the conclusion that the Shanghai minimum wage standard is low.Based on economic data as the sample of Shanghai, this paper based on the analysis of minimum wage of Shanghai influence factors, on the basis of using ELES model calculates the Shanghai minimum wage standard of moderate level, and from two aspects: the employment effect and security level test its suitability, found development level of the minimum wage in Shanghai is relatively moderate, can not only better for low-income workers basic life, does not have significant negative effects on employment.The cause of low minimum wage in Shanghai is mainly: the measuring method of Shanghai minimum wage standard is not reasonable, unreasonable relationship between minimum wage standard and the related factors, the imbalance rights and interests of parties of minimum wage standard. For these reasons, put forward the following suggestions: perfecting the measuring method, clearing relationship with the related factors, balancing the rights and interests of parties.