Minimum Wage System Impact Study On The Employment Of Migrant Workers In China's Construction Industry

Neither the modernization nor the reform of cities can not be succeed without rural labour. The Chinese rural labour has many traits, such as it has low income, has strong intention to flow between zones, was in abundant supply and willing to work in building industry, except that, the rural labour suppling has been exceeded demand for a long time in the past few years. According to a survey in Guangdong province recently, the rural labour employment has declined. Some people said that this phenomena appeared because of the over protection of the rural labour rights, and the implement of minimum wage legislation which raised the enterprise operating cost has also been a factor. The point is reasonable according to some overseas studying which was did in empirical way. But in China, sometimes, things are different. Based on theorise that exist, taking into account of the traits of the Chinese rural labour market and the fact of the increasing of the minimum wage, considering the opportunity cost and the rural labour agricultural income, using the panel data of six provinces in China, by constructing fixed effect model, the paper willing to find the impact that the minimum wage law has released. The empirical research showed that the influece is negative, which validates the unemployment effect model. One reason is that the minimum wage is higher or approching equilibrium wage, the other reason is the rising labour cost caused the constitution of labour by capital. So on one side we have to strengthen the studing on minimum wage legislation, on the other side, we have to take measures to promote the rural labour employment.