Interaction Study Between Minimum Wage And Labor Market

In China, the minimum wage law has been implemented throughout the country in 1994, and all of the provinces have already stipulated and implemented this law until the Tibet issued its minimum wage law by the end of 2004. For more than a decade, the minimum wage has been adjusted slowly at first, constantly adjusted now, at the same time the range of the adjustment is large. The monthly minimum wage in Shanghai is more than 1800 Yuan, while in Guangxi and Hainan the level is about 1000 Yuan in 2014.The minimum wage law was received widely attention in the economics after its emergence, and we have a large number of literature about it in the world now. While there is still a doubt about whether implementing the minimum wage has bad effects on social economy or not. As a developing country, China’s labor market, especially in the low-end labor market, the workers’ ability of negotiation is weak. So the minimum wage law is needed in the labor market. Most of the research literature about the minimum wage is based on the established minimum wage, while ignoring the determination of the minimum wage. This paper will study the interaction between the minimum wage and the labor market, based on the perspective of the minimum wage adjustment.Firstly, this paper analyzed the influence of the minimum wage for the labor market. In the article, according to the actual situation of our country, labor market is approximately divided into high-income industry labor market and low-income industry labor market; analyze the impact of the minimum wage on labor mobility. Then, to study the influence of the minimum wage from labor market conditions, trying to provide the analytical framework for formulation and adjustment of the minimum wage. specifically from six perspective to examine: per capita GDP, the average wage of labor market, laborer family burden level, employment structure, the lever of social security level and the dual contrast coefficient. And design of minimum wage determination of econometric model, combined with relevant data and indexes related to minimum wage and labor market for regression analysis.Finally, based on the interaction between the minimum wage and labor market, the paper present proposals: 1. standardization the benchmark of the minimum wage(clear the applicable people of the minimum wage law、limited the interval value of the minimum wage);2. The effectiveness of the minimum wage interlocking mechanism(the establishment of inter-city collaboration and harmonization mechanism、adhere to associate and relations with the social security system、to mobilize the driving role of the “collective wage bargaining system”).