Research On The Industrial Structure Effects Of Minimum Wages System In China

Minimum wage is an important concept of labor economics,it sets minimum standards to corporate labor costs,its change has very direct impact on the labour market.On the one hand the effective implementation of minimum wages can increase employee' wages,provide security for workers,promote labour supply,on the other hand it increases business' spending on labor,has obvious negative implications on labour-intensive industries.Based on the theory of minimum wage limit and the evolutionary theory of industrial structure,this paper firstly analyze the influence of minimum wage on employment,income distribution and labor migration according to related theories and domestic and foreign literature.Then it compares the industrial structure of main economic circles in our country,analyzes the economic developing situation of different regions,and constructs the measurement model of the minimum wage standard and the change of industrial structure with provincial-level panel data,study the influence of minimum wage standard on the industrial structure through empirical research.Finally corresponding suggestions are put.According to the research below,the high-tech industry in China is now insufficient,and labor-intensive industries still occupy big proportion in main economic circles' industrial structure,such as coal,mining and petrochemical resources industry,and the regional synergy has not been full played,the industrial structure convergence phenomenon is obvious.Judging from the overall data of our country,the improvement of the minimum wage standard has a negative effect on the development of the second industry,but it also promotes the development of the tertiary industry,the same as the general cognition.The indicator shows regional difference after regression of single provines,After the reunification of the provinces,the indicator shows that there is a certain regional difference,Henan and Shandong are labor intensive industry lead province,raise minimum wage standard has huge negative effect on its secondary industry,but has obviously motivation role on its tertiary industry at the same time;Beijing is just the opposite,it has high level of third industry and far below national average's second industry proportion,which causes that minimum wage's raise in this area will inhibit third industry development,and makes resources return back to secondary.Now China is in a crucial period of economic transformation and upgrading,industrial upgrade issue has become a focus of Chinese and foreign scholars,reasonable raising of minimum wages can regulate regional supply of labor force,eliminate backward enterprises,and force the industrial upgrading so that companies can develop towards the direction of high added value products.Actual conditions of different regions show very different social effects of the minimum wage,improper use may damage the economy,so it must be carefully adjusted so as not to harm the local economy.