Research On The Relationship Between Manufacturing Salary Level And Labor Productivity In Henan Province

From 2001 to 2016,the average annual growth rate difference between wage level and labor productivity in various manufacturing industries in Henan Province is basically negative,which indicates that the average annual growth rate of wage level in manufacturing industries in Henan Province has been lower than the average annual growth rate of labor productivity.So,what are the factors that affect the salary level of Henan employees? After China proposed to strive to achieve the goal of "synchronous improvement of labor remuneration and labor productivity",why is the average annual growth rate of manufacturing wages in Henan province still lower than the average annual growth rate of labor productivity for a long time? will this inhibit the labor enthusiasm of workers and lead to a decrease in the labor productivity of manufacturing industries in Henan province? Based on such a realistic background,this paper aims to explore the changing relationship and internal reasons between the wage level and labor productivity in Henan manufacturing industry.This paper selects the panel data of average wage level and labor productivity of 20 sub-sectors of Henan manufacturing industry from 2001 to 2016,and makes a comparative study and empirical analysis on wage level and labor productivity of Henan manufacturing industry.The results show that the labor productivity has little effect on the wage level of manufacturing industry in Henan Province,and the effect of the wage level of manufacturing industry in Henan Province on the labor productivity is more significant.In addition,the price level has great influence on the wage level and labor productivity of Henan manufacturing industry.Moreover,the wage level of Henan manufacturing industry shows strong wage stickiness,i.e.the lag wage has a significant impact on the current wage level of Henan manufacturing industry.Based on the analysis results,this paper puts forward the following policy suggestions for the development of manufacturing industry in Henan province: first,Henan province should speed up the transformation and upgrading of manufacturing industry and technically improve the labor productivity of the industry.Second,efforts should be made to realize the synchronous improvement of wage level and labor productivity in Henan manufacturing industry.Finally,improving the comprehensive quality of workers is not only coordinated with the pace of transformation and upgrading of manufacturing industry in Henan province,but also an effective means to improve their own value and thus their labor remuneration,i.e.wages.