Wages Of Migrant Workers Based On Bargaining Game Analysis

Migrant worker which appear after china's reform is a special social group and migrantworker is a product of our unique urban-rural dual system. Migrant workers have made agreat contribution to china's modernization, but because of various reasons migrant workersdo not share the economic fruits well, the most obvious manifestation is the low wages ofmigrant workers. Labor shortage problem caused by the low wages of migrant workers tosome extent has affected the development of some industries such as manufacturing, service,which rely on the support of abundant labor resources. So the wages of migrant workers mustbe solved reasonably.The formation of migrant workers' wage level is the process of market-oriented, laborgame is the main mechanism of wage level and game force decides the wage level.Bargaining game theory plays an important role on the research of distribution of benefits ineconomic. To study the problems of migrant workers' wage negotiation through bargaininggame theory can deeply reflect the process of allocating the enterprise's cooperative surplus,at the same time can also analyze how do external factors affect the allocation results.In this study we take migrant worker's wage income as the result of allocating thecooperative surplus, from the perspective of bargaining game this study explore how doinformation difference, patient factors, labor supply and other factors affect the allocationresults and analysis the process and outcome under various conditions, the main conclusionsare as follows:From a dynamic point of view, this article builds a alternating bid bargaining modelbetween the migrant workers and the enterprise about wages under the supply less than thedemand in the labor market of migrant workers, analysis various factors closely linked to thewages such as discount factors of both the migrant workers and the enterprise, the estimate ofthe value, which concludes that whether the two sides can reach an agreement depends on theestimate of the value, at the same time advise by setting up unions collective bargaining toimprove the migrant worker' s discount factors and by certain incentives to encourage theenterprise to reveal the real value that is created by the migrant workers, which can not onlyimprove the level of the migrant workers' wages, alleviate the labor shortage phenomenon,but also improve the whole efficiency of the migrant workers' labor market. Based on the study of Rubinstein's model, this study analyze how does the patiencefactor affect the negotiation process between the enterprise and the workers, find that theearning of partner has a positive correlation with his own patience while has a negativecorrelation with his opponent's patience.In the case of one enterprise and many migrant workers in the market, this study builds abargaining game model to analyze how does the labor supply affect the equilibrium result.The model results show that: the more intense internal competition among migrant workersresult in a low income in the process of negotiation game, when the migrant workers adoptthe collective bargaining system, they can as a whole negotiate with enterprise, which caneliminate the impact of internal competition, enhance the migrant workers' negotiatingcapacity, so they can get more revenue in the game.