Effect Of Minimum Wages Under The Dual Economic Structure In Shandong Province

To safeguard the rights and interests of low-income earners and maintain a stable labor market and then to promote the continuous development of market economy,our country labor promulgated the law of the People's Republic of China in 1994.The implementation of the minimum wage system has been carried out for 20 years.Now all of the provinces and cities have universally been covered with the minimum wage system.The degree of attention is increasing,and the growth in the minimum wage is bigger than before.Take Shandong province as example,in 1994 Shandong province initially set up the minimum wage of a company worker as 170 RMB every month.Since 1994 Shandong province has adjusted the minimum wage standard for 13 times.In May 2016 Shandong province raised the minimum wage standard again.The monthly minimum wage standard is divided into three gears.The first is 1710 yuan;the second is 1550 yuan;the third is 1390 yuan.All of them increased an average of 100 yuan,with an average growth rate of 7%For the implementation of minimum wage effect on employment,academia has been more concerned.From the perspective of theory and empirical,the research has been enriched gradually,but there is still no definite conclusion.The developed countries study on minimum wage jobs is earlier,and the theory is relatively mature.But the dual economic characteristic is significant in China,and the labor market is different from the general market economy countries.So the experience of developed countries is only used f'or reference for us but no guidance effect.Domestic conventional wisdom suggests the raise of the wages increases the enterprise cost,and then the demand for low-income labor will be reduced.The costs of a large number of rural laborer labor increase will urge enterprises to increase capital use and reduce labor use,which ultimately have negative impact on employment.However,in recent years some domestic scholars confirms in our country at present the most wage standard is low,far from the international workers' minimum wage standard through the corresponding empirical study which was carried out on the regional.And the minimum wage on employment of inhibition is not confirmed.It can optimize the industrial structure to a certain extent,promote the quality of employment.And the minimum wage standard should be different for different areas and different industry,the experience of other regions cannot apply to another area.Shandong province is in the eastern part of our country,on the very top level of economic development and population in domestic areas,and the dual economic structure is more significant,which is the representative provinces.This paper is to research Shandong province as an independent area,to provide certain theory and empirical reference for the implementation of the minimum wage system in Shandong province.This article first make the dual economic structure join to the theoretical analysis of minimum wage effect on employment.Through the income gap between urban and rural areas in Shandong province,the consumption gap and surplus labor force characteristics for data analysis,it is concluded that the present situation of the dual economic structure and its trend.Second analyze the minimum wage in Shandong province,and compare the historical development and the growth rate and growth rate with other 30 regions,to find its own characteristics,advantages and disadvantages of minimum wage standard.After the collected data such as minimum wages,employment,the per capita GDP in Shandong province been integrates,and the unit root test and integration relationship processing and error correction model,it is concluded that the minimum wage in Shandong province how take effect on overall employment in construction,manufacturing and wholesale and retail trade effects of the three industry situation.And find out the influence of different reasons,to help realize the different industries with different standard of minimum wage.Based on the above research,this article put forward a series of suggestions on how to streamline the minimum wage system,hoping to further enrich the content of the minimum wage system in our country,to offer some empirical basis for government departments to formulate rational and effective minimum wage,and to make the labor market more robust good running.