Compliance With The Minimum Wage In China And It's Determinants

The minimum wage,one of labor market regulation systems,is widely used around the world,and its purpose is to guarantee the basic livelihood of individual workers and their family.In recent years,with the Chinese government pays more and more attention to improving people's livelihood and adjusting income distribution,minimum wage as a basic institutional guarantee for the low end of the income level of workers gets the community's more and more concerned,and the minimum wage standard has increased every year.The core target of the minimum wage system is to protect the basic livelihood of low-end workers and their rights,and to achieve this goal is directly dependent on the effective compliance with the system,but in terms of theoretical or empirical level,existing research have shown that the compliance with the minimum wage is facing enormous difficulties and obstacles.In order to fully investigate compliance with minimum wage in China,analyze the determinant of compliance with minimum wage,further strengthen compliance and enforcement,achieve national development of this system in mind,the article does a study on compliance with the minimum wage in China and its determinants.Firstly,we use the minimum wage data and related data analysis macro composition and inter-regional differences to explore the level and the dynamic changes in the minimum wage;then this article uses CHIP2008 survey data to define and estimate the compliance with minimum wage in different dimensions.The result based on Probit and Tobit models indicates:since the definition of relevant concepts blur,resulting in between the provinces there is a clear difference in composition and connotation of the minimum wage,and despite the recent increase in the minimum wage of frequency and amplitude have risen,but the minimum wage level is still low;after adjust the various subsidies and allowances,social insurance premiums and overtime working income in according to the requirements of relevant laws and regulations,9.43%of urban workers and 47.40%of the migrant wages is less than the local minimum wage,and there are the 2.58%and 13.7%gap between their wage and minimum wage.Further econometric estimations find that:first,the compliance in the female,part-time workers is significantly less than that in male andfull-time workers;the age contribute to the improvement of the compliance except migrant workers over the age of 50;And high school or above education degree also can significantly increase the compliance.Second,there is significant difference of compliance with the minimum wage in industries;and the compliance shows downtrend in foreign investment and joint ventures,state-owned and collective,private and individual ownership in turn.Third,there is significant negative correlation between Kaitz index with compliance in migrant workers.The study shows that the level of the minimum wage in China still has many problems and needs to continue to improve and perfect.In view of raising the level of minimum wage and its compliance protecting the low-end wages of workers,this paper argues that the improvement of the minimum wage need a rational design of the minimum wage system,but also need to improve the level of minimum wage supervision mechanism and legislation which providing a strong legal basis for the governments.