Research On Low-wage Workers In China’s Urban Labor Market

The wage of workers continues to increase with the rapid development of China’s economy. However, there are still a large amount of low-wage earners in the labor market. This thesis explores the causes of low-wage from the view of theory and institution, while this thesis analyzes the negative effects of low-wage issue on micro economy from the aspects of individuals and enterprises. Furthermore, this thesis also reveals the low-wage issue makes threats to macro economy from the perspective of domestic demands, international trade and economic structure.We use the data from CHNS to do empirical research on low-wage issue in the years of 2000,2004,2006 and 2009. It shows the wage gap the low-wage earners and high-wage workers continue to expand. And the education level of low-wage group is low enough to below primary education and majority of low-wage workers are in the informal employment market. This thesis analyzes the area factor and finds that Middle-Western workers account for a larger proportion in the low-wage group than employees from eastern province. Then it makes some quantify analysis with the Logistic model based on the CHNS data, it reveals that compared to males, females are more likely to become low-wage group. It also reveals that low education level makes larger possibility of low wage. Furthermore, it finds the regional variables have a significant impact on low wages.This thesis suggest to solve the problem of low wages based on the above findings, Human capital is a key factor in affecting wages, so it should improve the educational level and do more training to increase workers’ human capital; Besides we should eliminate the discrimination and break employment barriers in the job market to create a favorable labor market environment. What’s more, we must reduce the labor-intensive industries to eliminate the soil of low-wage. Finally we should issue laws to promote collective wage negotiation system to ensure labor rights.