A Research On Wage Determination And Human Capital Returns Of Different Organizations In Chinese Towns

Economic reform has provided non-public enterprises with a soil for fair competition with public-owned enterprises.It has also promoted market competition and rational and optimal allocation of resources.During this period,while the wages of laborers increased,problems such as insufficient reform marketization,excessive treatment of state-owned enterprises,and unequal wages and wages of employees were also emerged.Many studies have shown that these issues are important features of China's transitional economy.Different organizations face different economic systems and external environments,and wage determination and payment systems are not the same.The sources of wage discrepancies are generally divided into two categories:one is the difference in individual human capital stocks,and the other is non-market factors such as occupation,industry,and region.In a completely market-oriented environment,the decision on wages is more determined by individual human capital,so the return on high human capital must be high.When the degree of marketization is not complete,non-market factors cause wages to deviate from market wages,and there is a premium for wages.If the differences are caused by different stocks of human capital,it is considered that different enterprises are "equal pay for equal work",otherwise they think "different pay for equal work"and there is market segmentation in the labor market.Unfair and unreasonable wage gap affects social stability and orderly economic development.Under the above-mentioned social background and current situation,it is intuitive to explore the internal wage decision and the change of human capital return to understand and knowledge the effectiveness of China's market-oriented reform and labor market efficiency.Based on the relevant excellent literature,this paper explores the differences in wages and wage decisions among different types of organizations in China through theoretical analysis,focusing on human capital factors.Taking the extended Mincer salary equation as the important research basis,using the three consecutive CHIP data,the robust least squares method and the quantile regression method are used for econometric analysis.First of all,the preliminary descriptive statistical analysis is mainly used for the research topic using data,and the basic situation of wages and human capital within each organization is obtained.Then,use empirical methods to estimate the return of human capital and explore the changes within different organizations(return rates of education,experience,etc.),and summarize the wage determination mechanisms of different types of organizations.Again,using the quantile regression to make further analysis,revealing the educational rate of return of workers under different income distribution conditions within different organizations.Finally,combined with the above analysis results and the process of China's market-oriented reform,summarize the relevant conclusions and propose corresponding policy recommendations.According to the CHIP data,foreign-invested enterprises have a greater advantage in terms of wage income or non-wage income,and collective enterprises have the worst level.Investigate bonuses and benefits separately,party and government organs and state-owned enterprises are more distributed except for foreign-funded enterprises.These non-salary incomes are not included in the income variables in empirical research.At the wage structure level,the wage structure of each organization gradually becomes similar over time.The public organizations(party and government organs,state-owned enterprises)have a relatively large average age of employees and a long working life.The empirical results show that educational rate of return is significant in all organizations of each year,but the rate of return varies from organization to organization.The rate of return on educational in non-public organizations(foreign,private and individual enterprises)is higher,that can be seen as a market-based return on education.In exploring the changes in the return of human capital,the empirical results show that from 2002 to 2013,the trend of educational return within the five types of organizations is different.State-owned enterprises are relatively special,and the rate of return on education has declined slightly in 2002-2007,it has risen in 2007-2013.The rest of the organizations are opposite to those of state-owned enterprises,this has not been mentioned in previous literature.The return on education of public nature is smaller and the rate of return on experience is higher.This shows that wage decisions are distorted to a certain extent in public organizations.The quantile regression results show that the public nature of laborers with low quintile income provides an educational return rate close to the market wage decision,but the high quintile is quite different from the market wage decision.On the basis of the above conclusions,what the government has to do is to gradually eliminate the barriers to labor mobility,ease the division of the labor market organization;pay attention to and strongly support the disadvantaged collective enterprises,provide financial support for them to open up funding channels;continue to deepen the market-oriented reform of state-owned enterprises.Standardize the remuneration mechanism of enterprises,make close contact with employee performance,adapt to the market and the internal environment;further improve the quality of laborers,regulate the relationship between market supply and demand,improve the information flow mechanism of the labor market;encourage women to participate in the labor market,improve the employment level of women and strive to ensure fair employment surroundings.