Minimum Wage And Youth Employment In China

As an international vulgate institution of labor and social security, minimum wage is disputed after its birth. Supporters believe that workers'basic rights can be protected by minimum wage institution. And the institution can stop sweatshops from squeezing workers. But, discommenders disagree with this. In their opinions, minimum wage institution makes workers'employment worse in both theory and practice. Youth is the principal part of workers who are in the inferior position in employment. The relationship between minimum wage and youth employment is the academic research focus. After being launched more than a decade, China's minimum wage institution is still far more from perfect. Besides, relationship between minimum wage and youth employment in China is also unclear. In this paper, the author attempts to evaluate the quantitative relationship between minimum wage and youth employment in China. All data used in this paper is from statistical yearbooks of 25 provinces in China in 2005. By using correlation analysis factor analysis and regression analysis, the author gets some unapparent quantitative results. Then the author makes father analysis by using classical economic theory. Some main conclusions are as follow: the relationship between minimum wage and youth employment in China is determined by area economic development levels; rigid labor wage caused by youth labor oversupply weakens the effects of minimum wage; the balance between minimum wage and other factors which effect youth employment must be ensured. At last, more researches are needed in future since this paper is a groping and defective one.