The Impact Of Minimum Wage Standard On Total Factor Productivity Of Chinese Export Enterprises

As one of the basic policies of the government to ensure the income of workers,the minimum wage system has been implemented in China for more than ten years since it was implemented nationwide in 2004.It is undeniable that the implementation of the minimum wage standard to a large extent ensures the income level of low-income groups and improves their quality of life,but at the same time it also means increasing the production costs of enterprises and increasing the operating burden of enterprises.On the one hand,it may "force" enterprises to strengthen technological innovation and improve their total factor productivity,On the other hand,it may distort the allocation of resources within enterprises and inhibit their total factor productivity.In order to clarify the influence of minimum wage standard on the total factor productivity of enterprises,this paper first discusses the theoretical mechanism from three aspects: cost effect,factor substitution effect and R&D effect based on the existing literature.The rising of minimum wage standard means the increase of labor cost,and the direct impact is the increase of production cost of enterprises.The first assumption is that the minimum wage increase will restrain the total factor productivity of export enterprises through cost effect;In order to save the rising labor cost,enterprises can replace the elements by means of machine substitution,but the enterprises,especially the small and micro enterprises with labor-intensive type,are short of funds,and the increase of labor cost further increases the capital burden,so it is often impossible to realize the replacement of factors.Thus,the second assumption is obtained,The increase of minimum wage will restrain the increase of total factor productivity of export enterprises through factor substitution effect;Technology R&D needs continuous capital and high-quality talent support,and the transformation cycle of technological achievements is too long,and the risk is too big.Therefore,when the labor cost increases,enterprises tend to reduce production costs rather than increase R&D expenditure,and even reduce the opportunities for employees to go out for training and learning,which is not conducive to employees to improve their R&D ability,The third assumption is that the minimum wage increase will restrain the total factor productivity of export enterprises through R&D effect.In the aspect of empirical research,this paper uses the data of industrial enterprises,customs and the matching data of minimum wage in various cities from 2000 to 2013,takes the unified implementation of minimum wage standard in 2004 as a quasi-natural experiment,and uses the double difference method to systematically evaluate the impact of minimum wage standard on total factor productivity.The results are as follows:First,from the results of large sample regression,the increase of minimum wage inhibits the total factor productivity of export enterprises.Moreover,this paper uses Heckman two-step method,placebo test,common trend test and different methods of total factor productivity measurement(such as ACF method,OP method)to describe the total factor productivity of enterprises.The regression results are still robust,that is,the increase of minimum wage standard inhibits the total factor productivity of export enterprises.Second,the heterogeneity test based on the region of the enterprise,product factor intensity,enterprise ownership type and trade mode shows that the increase of minimum wage standard has the strongest inhibitory effect on the total factor productivity of export enterprises in the eastern region of China,and the smallest effect on the total factor productivity of export enterprises in the central region of China;The implementation of minimum wage has a greater impact on the total factor productivity of labor-intensive export enterprises,but has a smaller impact on the total factor productivity of capital intensive export enterprises;The minimum wage has the strongest inhibitory effect on the total factor productivity of foreign-funded enterprises,but has no significant effect on the total factor productivity of state-owned enterprises;Compared with large-scale export enterprises,the effect of minimum wage on TFP of small-scale export enterprises is more significant;For the export enterprises engaged in mixed trade,the minimum wage implementation has the strongest inhibitory effect on TFP,while the effect on TFP of the export enterprises engaged in processing trade is weak.Thirdly,the mediating effect model is used to investigate the mechanism of the effect of minimum wage adjustment on total factor productivity of export enterprises.The results show that the increase of minimum wage standard promotes the increase of marginal cost of enterprises,so minimum wage standard suppresses the total factor productivity of export enterprises through cost effect;The minimum wage standard enhances the financing constraints of enterprises,so it suppresses the total factor productivity of export enterprises through factor substitution effect;The minimum wage standard reduces the R&D investment of enterprises,so it inhibits the total factor productivity of export enterprises through the R&D effect.Based on the above test results,this paper puts forward the following countermeasures: firstly,local governments at all levels should fully consider the regional differences when formulating or adjusting the minimum wage standard,and formulate the minimum wage standard in line with the regional economic development.Secondly,the local government should adjust and control the minimum wage system according to the development and scale of local export enterprises.Thirdly,local governments also need to formulate relevant policies to encourage technological R&D and encourage enterprises to improve their innovation level.Finally,the export enterprises themselves should take positive and effective measures.On the one hand,they should pay attention to technological innovation.From this perspective,the enterprises should strengthen the training of employees and pay attention to improving their professional skills and professionalism,such as organizing regular learning exchanges.Enterprises can also hire professional R&D personnel with high salary from outside to improve the innovation level of enterprises.On the other hand,enterprises can deal with the pressure of labor cost caused by the rise of minimum wage by adjusting the mode of trade.For example,from mixed trade to general trade or processing trade.Enterprises can also improve the welfare of employees,enhance the enthusiasm and enthusiasm of employees,improve work efficiency,and then improve the total factor productivity of enterprises.