The Effect Of Raising Minimum Wage Standard On Employee Welfare

Since the 1990 s,China has gradually implemented the minimum wage system.With the implementation of this system and the continuous increase of the minimum standard,the economic effect of the minimum wage system gradually emerged,and aroused the attention and thinking of the majority of scholars.Minimum wage standard continuously adjust and increase gradually increased,increased labor costs and increase production cost,so enterprise for the sake of profit maximization,likely for the products of the enterprise for the change in price,at the same time also may adjust the employee's welfare spending in response to the impact of the rise in the cost of production.In this paper,the effects of the minimum wage standard on the level of per capita employee welfare are studied by empirical analysis with the fixed effect model and the double difference method,and the robustness test is conducted on the empirical results.Secondly,the sample data are subdivided according to the enterprise's region,enterprise capital intensity,ownership and other standards to discuss the impact of the increase of the minimum wage on the average employee welfare level in different sample enterprises.Finally,from the perspective of total factor productivity of enterprises,the "intermediary effect" of the increase of minimum wage standard on the level of per capita employee welfare is tested.The research results of this paper show that :(1)from the perspective of the whole sample,the increase of the minimum wage standard will significantly increase the per capita employee welfare level,and every 1% increase of the minimum wage standard will significantly increase the per capita employee welfare level by 0.159%.(2)as far as the sample data are concerned,the increase of the minimum wage standard has a positive impact on the per capita employee welfar e level,but there are differences in significance and influence degree due to the differences in the enterprise's location,capital intensity and enterprise ownership.It has a significant positive correlation with the per capita employee welfare of enter prises in the eastern and central regions,but has no significant impact on the enterprises in the western regions.Compared with labor-intensive enterprises,it has a significant positive impact on capital-intensive and intermediate-type enterprises.This may be because capital-intensive intermediate-type enterprises are more conducive to coping with cost shocks by increasing capital input and improving enterprises' total factor productivity.Compared with state-owned enterprises and foreign-funded enterprises,the increase of minimum wage standard has a significant negative impact on the exogenous impact of private enterprises,which may be due to the slow adjustment of private enterprises to the increase of labor costs.(3)there is an "intermediary effec t" in the process of the increase of the minimum wage standard affecting the per capita employee welfare level.With the increase of the minimum wage standard,the total factor productivity of enterprises increases and the per capita employee welfare level increases.