The Measure Of Wage Effect And The Analysis Of Its Difference

In the promotion of many current market factors and policy factors, wage inflation has become a great problem of firms which is difficult to avoid. In this paper, based on efficiency wage theory,using the dual characteristics of wages which are cost effect and income effect as a start, we determine whether the enterprise implement efficiency wage mechanism or not by an innovative way as quantifying and comparing this two different wage effects. And then we construct a new wage effect determined model. Through the empirical research of Zhejiang manufacturing industry cost survey data, we have measured the wage effect of Zhejiang current manufacturing industry,and then we have thoroughly analyze its difference between different firms and different industries, also provide some references and suggestions for the government and firms. The income effect of wage inflation means that increasing wage level can improve the gain of firms by comparing the feature, such as wages, active turnover rate and the relationship of wage and productivity. And the cost effect of wage inflation means that increasing wage level causes the expenses of cost of firms being increasing. So when the income effect is greater than the cost effect in a firm, the firm has positive wage effect.When the cost effect is greater than the income effect, the firm has negative wage effect.The difference of wage effect can divided into differences in firms and differences in industries. The difference in firms means that the different value of wage effect causes the difference of positive and negative resistance between different firms. It can well reflect the value and path of wage effect by different firm characteristics. And the difference in industries mainly means that different industries have different firm proportions of positive wage effect. The difference in industries can well reflect the ability of bearing wage increasing impact in different industries, and then provide some reasonable references for the implementation of the policy.The empirical results show that:it's easier to achieve the positive wage effect in capital-and-tech-intensive firms. And this ratio just reach30%in Zhejiang manufacturing industry due to the labor-intensive industry characteristics; Only few industries reach a little high implementing ratio because of their high capital intensity, most are difficult to reach a high level, and also overall low level of technology has increased this situation; Improving the level of tech such as increasing the rate of value-added products is the most effective way to ease the impact of wage inflation. It can not only reduce the condition of achieving the positive wage effect, but also increase the role of wage incentive. As it is a considerable gap between the real level and the condition of achieving positive wage effect, we should help the industries whose implementing rate are low survive in the current background, and also further promote the overall tech level at the same time.