Study On The Influence Of The Minimum Wage On Employment In Hubei Province Based On Multiple Linear Regression

After nearly 20 years of practice,the minimum wage system has become one of the basic security system of our country,in the process of gradually raise the minimum wage standard,its impact on China's economy and society gradually emerged,the correct understanding and assessment of the impact of the minimum wage system,will help improve the minimum wage system and the implementation of the future.From Hubei Province in recent years,changes in labor costs,increase the minimum wage standard is becoming an important factor and the fuse of rising labor costs,a gradual decline in profit margins under the background of rising labor costs,will further squeeze corporate profit margins,which will promote the enterprises to change the mode of production and labor demand,the labor the pursuit of efficiency will lead to employment contradiction.The main purpose of this paper is to explore the relationship between the employment of Hubei province and the rise of the minimum wage,and to identify the extent to which the employment change is caused by the rise of the minimum wage.Based on reviewing and summarizing the research results at home and abroad,describes the current minimum wage on the employment impact of mainstream view,and reviews the theoretical model of the employment effect of minimum wages;reviews the birth and development of Hubei Province,the minimum wage system over the years of adjustment and implementation,considering the minimum wage standard implementation time and the price level by using the weighted average method to calculate the minimum wage in Hubei Province,and compared to the minimum wage standard in Hubei province 1995-2015 years;analyzes the employment situation in recent years in Hubei Province,and the employment trend of 1995-2014 in Hubei province were analyzed;the empirical analysis of Hubei Province,the minimum wage change the impact on employment based on multiple linear regression model,put forward the corresponding policy recommendations and implementation of the minimum wage and employment.The results show that the minimum wage standards in Hubei Province in1995-2006 years,2007-2015 years,there is an obvious stage characteristics,urban labor and employment in 1995-2000,2001-2008,2009-2014 showed significant stage characteristics.The empirical research shows that Hubei province minimum wage increases have significant positive effects to the current negative effect and the employment,considering the lag effect of actual minimum wage,the actual minimum wage increases 10% will lead to a decline in employment 0.7%.According to this,this paper argues that there is a self correcting mechanism for the impact of the increase of the minimum wage on employment in Hubei province.