Research On The Income Distribution Effect Of Minimum Wage In China

The minimum wage system of China was originally proposed in Enterprise Provision on Minimum Wage issued by former Ministry of Labor in 1993.In 2004,the former Ministry of Labor and Social Security has issued Provision on Minimum Wage,which has pushed ahead with the comprehensive implementation of the minimum wage system in China.The influence of minimum wage,according to most researches,exists in the employment effects.In this thesis,the influence will be studied on income distribution effects.Several aspects will be considered about the influence of minimum wage standard on income distribution effects.The thesis will be started with the basic concept of minimum wage,the domestic and overseas experience about this topic and the influence mechanism.They are presented to pave the way for studying the influence of minimum wage on income distribution.Then the minimum wage system and its real effects on income distribution will be described according to the developing status of minimum wage standards in China and comparison of different standards of minimum wage and relevant national economic indicators.From a macroscopic and microcosmic view,the thesis will further discuss the influence of minimum wage standard on income distribution.Besides,the ripple effect of minimum wage will be anatomized to strengthen the analysis of influence of minimum wage standard on income distribution.This research shows that the minimum wage system has significant influence on income distribution by providing solid evidences.Firstly,according to the microcosmic analysis,the increases of minimum wage standard can effectively"improve the income level of low income population",narrowing the income distribution gap between low-income people.Secondly,the result of macroscopic analysis proved that the minimum wage standard can effectively narrow the income distribution gap among all income levels,which echo the conclusion of microcusmic analysis and can be applied in a broader range.There are differences in different areas.A negative correlation was found between the minimum income standard and income gap in Northeast China Region.The negative correlation exists between east and west though the differences are not significant.Thirdly,the ripple effect was found in the national minimum income according to the measurements.Specially,the growth speed of minimum income standard in Northeast Region has lifted growth speed of average wage in society.However,the central areas showed an opposite change tendency,which helps to regulate income distribution and narrow the income gap.No obvious ripple effect was found in the east areas and the relation between the growth speed of minimum income standard and average income was not clear in the west areas.Based on the research results about the function of minimum income in regulating income distribution gap,several recommendations were proposed here:Firstly,the construction of minimum wage system needs to be completed continually.Secondly,the minimum wage standard needs to be put into practices by providing legal protection and intensifying system status.Thirdly,the role of labor union and industry associations in regulating and implementing minimum income standard has to be strengthened.Fourthly,a mechanism about link of minimum wage standard adjustment and average income in society has to be built.Finally,efforts can be made to slant the social wealth to resident income distribution so that our people can benefit in the economic development realistically.