The Effect Of Minimum Wage System On The Employment Of Migrant Workers In Manufacturing Industry

Since the establishment of China's minimum wage system in 1994,through many legislative provisions,it has formed a comprehensive multi-level operation mode covering all provinces.The minimum wage system is one of the basic means for the government to protect the rights of workers.Since the establishment of the minimum wage,there has been controversy in the academic circles about whether the minimum wage can improve the employment situation of low-income workers.In China,migrant workers belong to low-income groups,and their wages are often at or below the minimum wage level.In recent years,the number of migrant workers entering the city has continued to increase,nearly one third of which went to manufacturing industry.In recent years,the provincial and municipal governments continue to raise the minimum wage,based on the fact that there are still a large number of transferable labor in rural areas,that is,the supply of migrant workers in manufacturing industry is still in a state of oversupply.This paper chooses migrant workers in manufacturing industry as the research object,and analyzes the relationship between the minimum wage and the employment of migrant workers in manufacturing industry from the theoretical and practical aspects.On the theoretical level,according to the macro statistical data to calculate the minimum wage level in China,the general development trend of the minimum wage level in China is analyzed.Starting from the characteristics of supply and demand of migrant workers in the manufacturing market,the mechanism between the minimum wage system and the employment of migrant workers in the manufacturing industry is analyzed based on the buyer's monopoly model.In terms of empirical analysis,this paper uses panel data from 2000 to 2017 and adopts the fixed-effect model to analyze the impact of the minimum wage system on the employment of migrant workers in the manufacturing industry from both the national and regional perspectives.The results show that the minimum wage has a certain role in promoting the employment of migrant workers in manufacturing industry.This provides a theoretical basis for the government to raise the wage standard.The government can moderately adjust the minimumwage standard to promote the employment of migrant workers in manufacturing industry.From the perspective of different regions,due to the different geographical location and economic environment,the employment effect of the minimum wage system is different in different regions.The increase of the minimum wage in the eastern region will promote the employment of migrant workers in the manufacturing industry,and the employment elasticity of the minimum wage is higher than that in the western region.The implementation of the minimum wage system in the western region will also have a positive impact on the employment of migrant workers in the manufacturing industry.However,for the central region,the minimum wage system has no significant impact on the employment of migrant workers in manufacturing industry,which may be due to the mutual transfer of migrant workers in the central province,thus weakening the role of the minimum wage system.As a government control policy,the minimum wage is still at a low level in China,and there is a certain space to increase.Considering that the minimum wage system will be affected by the inter provincial differences,it is suggested that local governments should take the geographical location and economic environment into account when formulating the minimum wage policy,set up a reasonable wage gradient between provinces,and promote the reasonable flow of migrant workers between regions.