Research On Impact Of Minimum Wage On Corporate Employment Policy From The Perspective Of Productivity

In recent years,the government has gradually strengthened the protection of laborers in order to safeguard the legitimate rights and interests of employees and stabilize employment relations.Among them,the implementation of the minimum wage standard is not only conducive to the maintenance of social fairness and justice,but also provides a certain amount of income protection for the majority of workers.However,the pressure on the company is not to be underestimated.Many studies have shown that the minimum wage law will significantly reduce the economic activity of enterprises.The government's institutional intervention can easily cause the labor cost to be higher than the equilibrium level of the market.The most direct manifestation is the increase in labor cost,which has a certain impact on the employment decision of the company.However,the current study on the impact of the minimum wage standard on employment decisions of enterprises has not reached a consistent conclusion.Some scholars believe that the minimum wage standard may reduce the level of employment of the company while raising the salary level of the laborer.Therefore,the increase in the welfare of the employed person also causes some unemployed people to lose the opportunity for reemployment.This is the negative impact of the minimum wage standard.Also,higher productivity has a positive impact on corporate performance improvement and scale expansion.It can offset the cost pressure caused by rising minimum wages to a certain extent and slow down the negative impact on corporate employment decisions.At the same time,the harshness of labor laws has also increased the difficulty of dismissal.Under multiple trade-offs,the direction of change that leads to the final hiring decision of the company is not clear.Then,what is the impact of the minimum wage standard designed to increase the welfare level of the working people and promote social fairness on the employment decision of the enterprise?Can the company respond to the impact of the minimum wage standard by increasing productivity and ease the burden caused by rising labor costs?Based on previous research,this paper uses the data of listed companies in 2002-2016 and the provincial minimum wage data to examine the impact of the impact of the minimum wage standard on the employment decision of the company in a phased manner using the difference in difference model.The moderating effect model further examines the differences in the employment decisions of companies with different productivity when they face the impact of the minimum wage standard.The conclusions of this paper are as follows:(1)The minimum wage standard has a significant negative impact on the employment decision of the company,but with the passage of time,this negative effect tends to weaken.(2)The impact of the minimum wage standard on the employment decision of a company varies with the industry and region where the company is located,and the degree of influence will also change with time.(3)Enterprise productivity played a certain role in moderating the relationship between the minimum wage standard and the employment decision of the company.Higher productivity will inhibit the negative impact of minimum wage standards on corporate hiring decisions.The contribution of this paper lies in:(1)After controlling the substitution effect of capital on labor,this paper take the perspective of changes in the labor demand of the enterprise,and takes the enterprise productivity as an important moderate variable,and identifies the enterprises with different productivity facing the impact of the minimum wage standard.At the same time,the differential impact of its employment decision-making not only shifted the research from the macro perspective of the previous labor market to the micro perspective of the enterprise,but also further elaborated the impact mechanism between the impact of the minimum wage standard and the employment decision of the company.(2)Based on the analysis method of difference in difference model,this paper focus on the characteristics of the enterprise itself and identifies the impact of minimum wage impact on the company based on changes in labor costs.This practice is different from previous studies uses whether the local minimum wage standard was raised as a recognition condition,and thus to some extent made up for the inadequacies of existing literature regarding the minimum wage policy effect recognition strategy.This will not only help managers to regulate their management behavior in many aspects from the perspectives of labor costs and production efficiency,but also help government to assess the policy effect of the minimum wage standard from the enterprise level.