Research On The Employment Effect Of Minimum Wage System In China

The minimum wage system,as a labor legal system that guarantees the basic living needs of basic wage workers,is originally intended to protect the basic rights and interests of workers,meet their basic living needs,and increase the wage income of low-income workers,thereby reducing poverty and improving the rich and the poor gap.As a result,the promotion of social equality and stability has been improved.Therefore,many scholars from this point of view,the minimum wage system in the protection of workers’ lives,improve wage income distribution perspective.This article judges the rationality of the minimum wage system design based on two dimensions: One is from the qualitative perspective,that is,most scholars focus on the income distribution effect;the second is from the quantitative perspective,that is,its employment effect has an impact.These are two aspects that must be balanced in the design of the minimum wage system.The income distribution effect analysis pays more attention to the high wage income of the minimum wage system,and the employment effect pays more attention to the high employment quantity of the minimum wage system.Different research perspectives will lead to different understanding of the moderation of the minimum wage system.Therefore,this paper attempts to evaluate the moderation of China’s minimum wage system from the perspective of employment effect of the minimum wage system.In addition,there are some disputes about the employment effect of the minimum wage system in the academic circles,and some problems also appear in the development process of the minimum wage system in China.Based on this background,the research on the employment effect of the minimum wage provides some help and policy suggestions for scientifically evaluating the minimum wage system and formulating reasonable related clauses.This paper mainly studies the employment effect of minimum wage from the following aspects.At the national level.First of all,this paper establishes the virtual variable regression model of the minimum wage,and finds that the implementation of the minimum wage system has a significant positive effect on the overall employment.Secondly,through propensity score matching and difference-in-difference estimator regression analysis,it is found that the impact of the minimum wage standard on the overall employment is nonlinear.When the minimum wage standard is lower than a certain threshold level,it shows a negative inhibitory effect on employment;when the minimum wage standard increases more than the threshold,it shows a positive promotion effect on employment.At the provincial level.The variable coefficient panel cointegration regression model is established to study the employment effect of the minimum wage in different provinces,including the stationarity test of variables,cointegration test,Granger causality test,model setting test and the modification of the model.The results show that the employment effect values of the minimum wage in different provinces are not consistent,but the direction is roughly the same,which is the minimum wage The non-negative inhibitory effect of capital on employment.Low income groups.The three employment effect models constructed by changing the explanatory variables show that the general model underestimates the employment inhibition effect of minimum wage,and the employment inhibition effect is stronger for low-income groups.Finally,according to these findings,this paper puts forward some feasible suggestions for the adjustment of minimum wage system and minimum wage standard in China.