A Study On The Impact Of The Increase Of Minimum Wage Standards On Low-income Groups In China

China’s "Minimum Wage Regulations" came into effect in 2004,so that employees’ rights and interests are better protected,while satisfying their basic livelihood,the whole society is also fairer and more stable.However,different people have different views on this provision,some people believe that the rights and interests of workers are better protected by this provision,and some people think that the promulgation of this provision is of little significance.The minimum wage has been in place since its inception.,whether it has effectively protected the rights and interests of workers needs to be further studied.Because the minimum wage system was designed to defend the interests of low-income people in the first place,it is of great significance to study the rise of the minimum wage standard for low-income groups.This paper mainly explores the relationship between the increase in the minimum wage standard and the employment and income of low-income groups.Based on the analysis of the impact of minimum wage standards on employment and income and the relevant literature on the definition standards of low-income groups,this paper proposes the impact mechanism of minimum wage standard improvement on the employment and income of low-income groups.Using the data of the China Comprehensive Social Survey（CGSS）and the macro data of various provinces and cities,the fixed-effect model was used for empirical analysis,and the heterogeneity of low-income groups was considered,and the low-income groups were classified according to the type of household registration.In order to solve the endogenous problem,the minimum wage lag of 1 period in each region is taken as a replacement variable for the minimum wage standard.The following conclusions are drawn that the increase in the minimum wage standard will have a certain negative impact on the employment of low-income groups,and the impact on low-income groups with rural household registration is greater than that on urban household registration.However,the increase in the minimum wage standard has a significant positive impact on the wage income of low-income groups.Whether for urban household registration or rural household registration,the increase in the minimum wage standard promotes individual income.In addition,the original purpose of the minimum wage is to help low-income groups escape poverty.Empirical analysis has found a negative correlation between the increase in the minimum wage and the poverty rate.Comprehensive research and analysis results,this article believes that the minimum wage has a small negative impact on the employment of low-income groups,and it has a certain positive effect on their income and poverty reduction.According to the conclusion,relevant suggestions are given for further improving China’s minimum wage system,and some references may be provided when formulating relevant policies for low-income groups.It is necessary to ensure that the minimum wage standard is raised when the social cost is extremely small,and avoid the transfer of the social costs caused by the increase of the minimum wage standard to the low-income groups.It is also necessary to increase human capital investment in low-income groups and improve their job skills in order to better adapt to social development.