Research On The Effect Of Minimum Wage Standard Increase On The Proportion Of Labor Income

Since the reform and opening up,China's economy has been developing rapidly.However,with the continuous increase of the economic aggregate,the income gap between Chinese residents has been widening.For most members of the society,especially low-income workers,labor income accounts for most of the income.The proportion of labor income in China peaked in 1995 and then began to decline.The minimum wage system is a system that can directly affect the wage level of workers.In fact,its main contribution is to reduce the income gap of residents,alleviate social conflicts and labor conflicts that may be caused.Although the implementation of the minimum wage system has a certain time span,but from the specific implementation and implementation effect,the minimum wage system can really increase the income of workers,narrow the income gap between residents,is still worth further research.Based on the literature and theoretical research,this paper puts forward the research hypothesis and constructs the regression model.China provincial panel data from 2006 to 2016 were mainly used.Through China's statistical yearbook and provincial statistical yearbook of labor remuneration and GDP data,calculate the labor income ratio of the relevant data;The arithmetic mean method was used to calculate the minimum wage standard of each province,and relevant documents were consulted to check and fill in the vacancy.Using simple OLS regression and fixed effect model,this paper empirically tested the effect of minimum wage on labor income ratio.The results show that the increase of minimum wage has a significant effect on the proportion of labor income,but the effect is small.Further analysis of the heterogeneity of the impact of the minimum wage standard on the proportion of labor income in eastern,central and western China shows that the impact of the minimum wage standard on the proportion of labor income in eastern China is significantly negative.The influence on the proportion of labor income in central and western regions is not significant.The results of relevant institutional tests show that the increase of the minimum wage has led to a decline in the proportion of labor income,on the one hand,because the increase of the minimum wage has reduced employment.On the other hand,the rise of the minimum wage increases the labor productivity and the average wage,but it increases the labor productivity faster than the average wage.According to LS=W/proc,the increase of the minimum wage leads to the decline of the proportion of labor income.The original intention of the minimum wage policy is to increase the income level of low-income workers and narrow the income distribution gap,but due to the influence of many factors,the minimum wage system may lose its original role.In order to avoid some negative influence,this paper argues that the relevant departments should be more reasonable minimum wage standard,to strengthen the publicity of minimum wage standard,the relevant departments should strengthen the individual enterprises,the supervision of the implementation of the minimum wage to active implementation of the minimum wage is more strict inspection.