The Impact Of Minimum Wage On Formalization Of Employment

Along with the socialist market economic system reform and constant opening up,the scale of our country's informal sector and the informal employment expands rapidly,informal employment has become the main body of the labor market.But the deficiency of informal employment has its defects,the existence of a wide range of informal employment will set a dangerous precedent for the further deepening of economic system reform,the 19 th report pointed out that China's economy has changed from rapid growth stage to high quality development stage.Improving the quality of employment and promoting employment quality conform to the requirements of economic development in China at present stage.Minimum wage system is a basic system to maintain formal department workers can have basic earnings,but its implementation has been controversial,more people focus on the policy can bring a shock to the employment,and ignored it may have other positive role.This article uses the micro sampling survey data and finds the impact of minimum wage on employment is not negative,after grouping the workers into formal employment and informal employment,we found that the increase of minimum wage would promote the normalization of employment trends.In particular,the minimum wage increase will appeal to the unemployed workers to informal employment,informal employment workers to formal employment.The result is the amount of unemployed is reduced,the formal increases.At the same time,the income of informal employment and formal employment are analyzed in this paper,and found that the minimum wage per rises 1%,the salary of laborer will rise by about 0.6%.The elasticity of minimum wage for the influence of informal employment is higher than formal employment elasticity,the influence of that illustrate the impact of minimum wage of income is not limited to the formal sector,but there are also spillover effects to the informal sector.Promoting employment develops regularized should become one of the government's policy objectives.Reasonable design and flexible market regulation system should be combined;To attach importance to education and training,improve the human capital of the workers;Should formulate corresponding policies according to the specific situation in different areas;Should change the traditional concept of employment,and protect the rights of women's equal employment.Pursuit social justice and strengthen the attention to low-income people;Finally,strengthen supervision and management,ensure the execution of policy.