• ISSN: 2155-7950
  • Journal of Business and Economics

The Impact of Minimum Wage Standard on Migrant Worker Shortage

Stimulated by Urbanization

Zhu Yining
(Fudan University, China)
Abstract: Migrant workers shortage has become one of the problems impeding the process of urbanization in China. In this context, enterprises have to give a pay raise to be market friendly while the Chinese government has established minimum wage standard to ensure employment. Scholars’ views are poles apart towards whether this standard can meet the requirements of eliminating “shortage” and accelerating urbanization. This essay will apply data analysis, personal interview and modeling. Data analysis based on Chinese Family Panel Studies (CFPS) indicates that the standard have the prerequisite to be a solution to migrant workers shortage. But taking real-life situation into consideration, the interview with two families in a small-scale county in Anhui Province and the proposed model reveal the actual impact in reality and in theory respectively. From this point, a full consideration of the whole aspects, which include both salary increase and reforms in household registration and education system in rural areas, is highly needed to solve the problem of migrant workers employment as well as walk out of the dilemma of urbanization.
Key words: minimum wage standard; migrant worker shortage; urbanization; employment
JEL code: J

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