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Analysis on the Rural Labour Non-agricultural Employment Affected by Minimum Wage Law

Author: YueZhongLu
Tutor: YangHuiLing
School: Southwestern University of Finance and Economics
Course: Political Economics
Keywords: Minimum wage system Migrant Workers Panel Data Analysis Empirical Analysis
CLC: F249.2
Type: Master's thesis
Year: 2010
Downloads: 268
Quote: 0
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Abstract


Farmers work for China's reform and opening up and industrialization, urbanization emerged a new type of labor force for China's economic construction and social development made a huge contribution. However, migrant workers in a weak position in the labor market, especially the low wage level makes their basic rights is difficult to get the proper protection. Therefore, the functions of the government to protect the rights of migrant workers seem very important, and the minimum wage system for the protection of the lower income groups of workers on the labor market functions embodied human intervention. Since 2008, the global financial crisis caused by the U.S. subprime mortgage crisis cause significant impact to China's SMEs, the national employment situation is grim, consequent to the abolition of the minimum wage system, the standard level of its impact on employment in intense discussion. Fanfangguandian believe that the implementation of the minimum wage, so the increase in corporate costs, the enterprise had a large number of layoffs in order to survive in the face of the deteriorating external environment, which led to a decline in the level of the National Employment The square view that, in the current economic situation should insist on the implementation of a minimum wage guarantee system. China is a country of excess labor resources, strong capital weak labor is an indisputable reality. If you do not implement a minimum wage system, companies can easily lower wages, there is no reason to be protected the legitimate rights and interests of laborers, the worse may not be able to survive. From the previous analysis, the implementation of the minimum wage system and not caused by the decline in the employment of migrant workers, the opposite also play a role. How the employment impact of what the minimum wage system, the paper selected farmers in low-level labor market study to explore the impact of the minimum wage system for the employment of migrant workers. Theory and research methods, the minimum wage from abroad on employment from the two levels of theoretical and empirical analysis of the impact of the minimum wage system in China on the employment of migrant workers. Theoretical analysis shows that the implementation of the minimum wage has little effect on the business, and not reduce the employment of migrant workers; based on the empirical analysis of the six provinces in China (City) panel data also show that the implementation of the minimum wage on the employment of migrant workers positive effect, the implementation of the minimum wage will help improve the level of employment of migrant workers in China. Thereby draw a conclusions support tetragonal perspective. This article consists of five parts, including the Introduction and four chapters of the body, are described as follows: Introduction section introduces the research background, the study of the theoretical and practical significance, and further sets out the idea of ??this study, the object of study and research methods left pave the way for the next analysis. Chapter theoretical basis writing articles. In this section, a brief review of the origin of the minimum wage at home and abroad in development; Next theoretical study abroad have a greater influence on the impact made by the minimum wage on employment, including the model of perfect competition, two-sector model monopsony model, the impact effects model, heterogeneity of workers model, the model of efficiency wages, the minimum wage of Marx's theory eight outcomes; introduce the theoretical study based on further foreign empirical research; introduction to the theory of foreign is domestic and empirical research after the minimum wage on the employment impact of theoretical and empirical research; end of this chapter also describes the other articles cited theory - dual structure of the labor market model. The second analysis is the theory of the minimum wage on the employment of migrant workers in China, is one of the main part of the article. To analyze the impact of the minimum wage on the employment of migrant workers, it is the beginning of this chapter first describes the formation of China's migrant workers in the labor market and its characteristics; Next, by using the two-sector model and reality in the theoretical analysis of a minimum the impact of wages on the employment of migrant workers, does not reduce the amount of employment of migrant workers come to the implementation of the minimum wage system, and further analysis of this outcome because of the immaturity of the minimum wage system in China and take recessive compression the real wages of migrant workers; analysis in this chapter were problems in the implementation process of the Tacit compressed low wages reasons the situation and our minimum wage system. The third chapter is one of the empirical analysis of the impact of the minimum wage on the employment of migrant workers, but also an important part of the article. Panel data for six provinces (municipalities) in this chapter, the employment of migrant workers to the explanatory variables, the introduction of the minimum wage variable, the multiple of the regional GDP and urban-rural income gap as explanatory variables, 'build fixed effect variable intercept model empirical analysis of employment effects of the minimum wage migrant workers. The empirical results show that the minimum wage has a positive impact on the employment of migrant workers, and verify the beginning of the article inference, consistent with theoretical conclusions of the second chapter of the article. The fourth chapter is part of the policy recommendations of this article. This chapter, respectively, from the two aspects to improve the minimum wage system and reform the system of employment of migrant workers in accordance with the previous theoretical analysis and empirical results suggest.

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CLC: > Economic > Economic planning and management > Labor Economics > Countries in the world of labor economic profile > China
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