A Research Of Minimum Wage Regulation Effects On The Regional Income Disparity

The problem of Minimum Wage Regulation which is implemented hasalways been the focus of the academic community debating. Based on the status of theboth urban and rural structure in China, this paper combs the literature and the theories onMinimum Wage Regulation and the regional income disparity firstly, and discovers that theinitial aim Minimum Wage Regulation implements has always been protecting thelow-wage workers, but the result is probably even worse, and the income inequality isexacerbated. As Minimum Wage Regulation has effects on the employment, poor, andwages to GDP, we could understand that it must have some relation with the regionalincome disparity. Although we are not sure what it is. As now, a few scholars comes tosuspect the view that Minimum Wage Regulation can narrow the regional incomedisparity; Secondly, by learning the development of Minimum Wage Regulation and theregional income，we find that from Minimum Wage Regulation came out, the minimumwage has no improving after deducting the price factor，but makes some people’s livemore hardly. In addition, it is clear to understand that the regional income disparityin recent years has gradually reduced. Finally, after researching the effects betweenMinimum Wage Regulation and the regional income disparity, we can provethat the effect of the minimum wage is conditional on the regional income gap. On thewhole, it appears to be the first expansion and the second contraction. Furthermore, On thisbasis, by introducing the control variable-the dual economic structure, I find that as thedual economic structure gradually promoting, Minimum Wage Regulation effects on theregional income disparity more obviously.