Research On The Impact Of China's Minimum Wage Policy On The Employment Of Low-income Groups

On March 1,2004,China's Ministry of labor and social security issued the minimum wage regulation.The minimum wage policy has been formally implemented throughout the country since then.The basic purpose of the minimum wage policy is to ensure the basic life of workers and their family members,and promote social fairness and stability.However,from the implementation of the minimum wage policy,there are different evaluations.According to the traditional economic theory,the government does not We should intervene the wage level.The implementation of the minimum wage policy will lead to the increase of unemployment rate,the decrease of export and the social inefficiency.Therefore,the positive and negative effects of the minimum wage policy become an empirical problem.This paper mainly analyzes the impact of the minimum wage policy on the employment of low-income groups.Using the data of China's Comprehensive Social Survey(CGSS),this paper first analyzes the control variables that affect the employment level,and uses logit model to estimate and test the employment probability of labor force,then analyzes the factors that affect the employment probability,and analyzes how the variables affect the employment probability Employment probability,and obtain the employment probability of each individual and analyze its data structure,get the change of employment probability before and after the minimum wage standard is raised,which provides a certain basis for the subsequent inclusion of this part of control variables into the double difference model.Using the double difference model,taking 2013 as the minimum wage policy change time,using the labor employment probability estimated by logit model and other control variables,divide the experimental group and the control group,establish the double difference(did)statistics,and make regression,get the impact of the minimum labor policy on the employment of low-income groups,and then divide the region into the Middle East In the western part of China,the paper studies whether there are regional differences in the impact of minimum wage policy on employment andanalyzes the reasons.The following conclusions are drawn:Based on the analysis of the empirical results of 22 provinces that adjusted the minimum wage standard in 2013,the employment of low-income groups is affected not only by household registration,gender,age,education level,health status,and the number of family population,but also by the increase of the minimum wage standard,the employment level of low-income groups is improved.After estimating the employment probability of labor force,the employment rate of low-income groups will be improved The double difference method is used to analyze the impact of policies.It is concluded that the increase of the minimum wage standard increases the employment probability of low-income groups 1.78%.From the empirical results of the western region,that is,Yunnan,Guizhou and Sichuan,the employment of low-income groups is affected not only by household registration,gender,age,education level,health status,and the number of family population,but also by the increase of the minimum wage standard,the employment level of low-income groups is also improved.After estimating the employment probability of the labor force,the dual difference method is used for administration According to the policy impact analysis,it is concluded that the increase of the minimum wage standard increases the employment probability of low-income groups in Yunnan,Guizhou and Sichuan 2.86%.From the empirical results of the central region,that is,Shanxi,Henan and Anhui,the increase of the minimum wage standard increases the employment probability of the low-income groups in the region 1.65% The promotion effect of the minimum wage policy on the employment of low-income groups in the central region is slightly weaker than that in the western region.From the empirical results of the eastern region,that is,Jiangsu,Zhejiang and Shanghai,the improvement of the minimum wage standard has no significant impact on the employment probability of low-income groups in Jiangsu,Zhejiang and Shanghai.Finally,according to the research results of this paper,the corresponding policyrecommendations are put forward.China should continue to implement the minimum wage policy,accelerate the improvement of the minimum wage standard,strengthen the supervision of the minimum wage policy,consider the differences between the minimum wage policies in different regions,make more reasonable minimum wage standards for different regions,and improve the labor quality and legal awareness of low-income groups.