China's Economic Growth Process Of Wage Adjustment Mechanism

Wage is a composite index of profit and cost, which is a determinant factor in the process of economic growth. The change of wage must affect economic growth, but many realistic things about the change of wage and adjustment in china depart from economic theories, which need revise by effective measures. The paper starts from the theory of endogenetic growth and find the inherent relation between economic growth and wage, try to bring forward the analyzing frame of adjusting mechanism wage in process of economic growth. Then I study basic state the change of wage in china. Finally, I analyze the adjusting mechanism of wage from micro economy, middle economy, macro economy and region.In the academic analysis, I find t the inherent relation between economic growth and wage by the study of economists. In the logic analysis, I point out that wage affects economic growth in micro economy, middle economy, macro economy and region. wage adjusts the micro economy by impacting a corporation and individual; wage adjusts the middle economy by the structure of consumption, labor and investment; wage adjusts macro economy by consumption, accumulation, cost; the difference of wage adjusts the development of region by the flow of labor and the difference of consumption. So the paper puts forward a logic frame of adjusting modes, routes and impacts of wage in economic growth.In practical application, the paper analyz(?)s the adjusting mechanism of wage in china by logic frame. First, I point out the basic states of wage in process of economic growth: in planned economy, wage was low, total wage increased slowly, the gap between the growth wage and economic growth largely fluctuated; in reformation of economy, wage increases quickly, the gap between wage and GDP increasingly enlarges, scatter of region and industry broadens. The trends are caused by irrational income distribution, imperfect labor market and limitation of economic strategy. The paper analyzes the adjusting mechanism of wage in process of economic growth in china from micro economy, middle economy, macro economy and region. In micro economy, the paper mainly explains the wage difference of different companies which affects the reasonable collocation of labor and restrains the adjusting function of wage, so I put forward perfecting labor market and implementing marketable wage in state companies. In middle economy, the paper points out that the change of wage affects the structure of industry by consumable demand and the supply and demand of labor. In the demonstrating study, we find that wage and the first industry,the second industry have Granger causality, wage and the third industry have not Granger causality, so we need improve the environment of market development and promote the third industry. In macro economy, the paper points out that the change of wage adjusts the running of macro economy through affecting gross demand and gross supply. In the demonstrating study, we find that wage is not a determinant of economic growth, economic growth is a determinant of wage. so we must promote employment and social insurance, increase the investment of education and training and drive companies to decrease cost. In region, the paper mainly explains that the difference of wage among regions affects the distribution of labor and the difference of consumption adjusts the development of the regions. It points out that the division of labor market is the most important among reasons causing the difference of wage in region, so we deepen the market reform of middle and western region, remove the division of labor market, found an unitive and perfect labor market and the mechanism of adjusting region benefit.