A Game Study Of Minimum Wage Policy Between Foreign Workers And Laborers

In this study,a case study was conducted on Taiwanese S firms.The practitioners think that due to rising wages in Taiwan,the minimum wages of labors and foreign workers are linked to each other.In addition to causing employers to employ migrant workers at a higher cost,employers must hire more foreign workers can only maintain their competitiveness.The adjustment of the minimum wage instead comes at the expense of increasing the employment costs of the manufacturers and does not raise the wage of native workers or increase their employment opportunities.In order to verify the views of the industry,first of all,through the discussion of the formulation of government policies,labor wage negotiations and manufacturers' production decisions,this study explores the setting of the minimum wage in the region and foreign workers,firm profits,consumer surplus and overall social welfare.The results showed that: Firstly,since the manpower input in a unit of output in management is less than the manpower input in production,the wage for management will be higher than the one in production.Second,under the special concern of officials over labor,we can see that regardless of whether the working-class laborer and the foreign worker receive the minimum wage or the minimum wage,the government intends to reduce its wage to the level of wage reservation.In this case,the cost to the enterprise is the lowest,At this point,the profits of enterprises in the region reached the highest level,but the lowest level of labor benefits.Thirdly,when labor unions negotiate but foreign workers are set by the local government to set a minimum wage,foreign workers are allowed to retain their wages but the wages of their own workers will be higher than those agreed upon without the minimum wage.Fourthly,when the government cares equally with labor,consumers and businesses: the government policy of maximizing social welfare,corporate profits and consumer surplus is that both domestic and foreign workers' salaries are set at retained wages;the government policy of maximizing union utility is that the salaries of both domestic and foreign workers are determined by trade union negotiations.Fifthly,when officials care enough about their workers,their minimum wage level will be higher than the retained wage level.Said that if officials care about consumer welfare,corporate profits and labor utility of the same(similar),the minimum wage will be set at the level of retained wages.Only officials who care enough about their labor will raise the minimum wage.At this point,the profits of enterprises in the region will be harmed.Sixth,when officials care enough about the labor force,we can see that when the native workers and the foreign workers receive the uniform minimum wage,only the officials concerned with their labor force are sufficiently concerned that the minimum wage will be higher than the retained wages,otherwise the government will have the intention In the meantime,foreign workers will receive their retained wages when they earn differential minimum wage,while those who are domestic workers will receive higher wages than foreign workers.Seventh,when the officials concerned enough about the labor efficiency in the region,the minimum wage of domestic workers is positive.At the same time,the higher the minimum level of wages paid to domestic workers when officials are more concerned with the effectiveness of labor in the region.When officials raise concerns about the labor rights of their own workers,wage rates in the region will increase,consumer surplus will drop,labor union effectiveness will increase,but overall welfare will show a decline.When the government adopts a differential minimum wage,although it can raise the wages of laborers in the region,its consumer surplus and the profits of firm have declined by a large margin.In the meantime,when officials are very concerned about their own labor,the difference in minimum wage will raise the wage rate of domestic laborers to a high level and will hurt the welfare the most.Therefore,judging from the level of labor welfare,we can see that there is no difference in the wage level between the minimum wage and the uniform minimum wage provided that officials do not care about the labor force.If officials are concerned about labor adequately,setting a uniform minimum wage will allow both domestic and foreign workers to receive the same minimum wage,which will result in a drop in the wages of domestic workers due to the increased cost of labor.Secondly,using the total number of domestic laborers in Taiwan and the number of foreign laborers imported,this study analyzed the use of vector error correction model and found that the elasticity of the number of foreign labors in employment to the employed population in Taiwan was 1.6070.At the same time,we can observe from the overall employment information in Taiwan that both the long-term and short-term employment of laborers and the introduction of migrant workers can help increase the employment of native workers.The analysis of this study shows that in terms of the job market in Taiwan,the foreign workers and native workers are in fact mutually complementary.Therefore,the introduction of foreign workers will not displace the employment of native workers.From a theoretical point of view,when the political system in the region has to pay more attention to labor,decoupling the minimum wage of foreign workers from the minimum wage of their own labor force will help to improve the wage treatment of local workers.But its side effect is to reduce the market competitiveness of enterprises.Excessive protection of workers and raising their salaries may result in distortions in the market.Rather,social welfare will be reduced.Welfare levels negotiated through the groups by employers and employees will instead be higher.