The Employment Effect Of The Minimum Wage In China

If China set the “enterprise minimum wage rule” in 1993 as the starting point,then China’s minimum wage system has been in operation for 26 years,but if it is officially counted since the implementation of the “minimum wage regulations” in2004,it has only 15 years of operation history.Foreign countries have long focused on the appropriate value of the minimum wage standard,and China is still stuck on whether the minimum wage system should be implemented.At present,most countries in the world have implemented this system,and some have even had a history of more than 100 years,which is enough to show that the existence of the minimum wage system is reasonable.This article first summarizes the domestic and foreign literature on the effects of minimum wage employment,and summarizes the theoretical and empirical studies of the effects of minimum wage employment at home and abroad.Then,a theoretical analysis of the employment effect of the minimum wage is conducted,including a completely competitive labor market model and an incomplete competition labor market model.The incomplete competition labor market model can be divided into a buyer’s monopoly market and a dual labor market.hen extended the analysis of the effect of minimum wage,and analyzed the effects of other dimensions of minimum wage,including wage distribution effect,income distribution effect,skills acquisition effect,price effect and profit effect,to help fully understand the impact of minimum wage on employment.From the perspective of policy objectives,if we are only concerned about the effect of the minimum wage termination,that is,the minimum wage leads to the loss of employment opportunities for some people,the perspective is too narrow.Therefore,in the final policy proposal,we must comprehensively consider the employment effect of the minimum wage and different effects from other perspectives,including the wage distribution effect,income distribution effect,skills acquisition effect,price effect,and profit effect.The effect helps us to fully understand the impact of the minimum wage on employment.How the minimum wage more broadly affects the theoretical model and empirical evidence of low-wageor low-skilled workers helps us understand how the minimum wage can better achieve the set policy goals.From the empirical point of view,the minimum wage has a negative impact on employment in the Yangtze River Delta as a whole.However,the coefficient of the lag of the minimum wage standard failed to pass the significance test.The growth rate of the GDP in the Yangtze River Delta has a positive impact on employment.This result is in line with classical theory and previous empirical experience.The working-age population has a positive effect on employment,which is also in line with theory.The estimation results of the large city sample and the overall sample are relatively consistent,and the minimum wage does not pass the significance test in the estimation of the small and medium city samples.