The Effect of Raising Minimum Wage Standard onEmployee Welfare

• 1、Economics and Trade School,Hunan University,Changsha 410000

Abstract：Since 1990 s, standard of minimum wage has been established one after another all over our country.With the implementation of the system and the increasing minimum standards, the impact of the minimum wage on social economy has gradually emerged and received great attention from scholars.In this paper, the effects of raising the minimum wage on employee welfare are studied by empirical analysis using the database of Chinese industrial enterprises, manually searched minimum wage data of various provinces and cities, and macroeconomic data, through the fixed effect model and the double difference method, and the robustness test is conducted on the empirical results.Secondly, the sample data are subdivided according to the standards of enterprise ownership, enterprise capital intensity and region to discuss the impact of raising the minimum wage on the welfare level of employees in different sample enterprises.The research results of this paper show that :(1) from the perspective of the whole sample, the increase of the minimum wage standard will significantly increase the level of employee welfare, and every 1% increase of the minimum wage standard will significantly increase the level of employee welfare by0.159%.(2) in the sub-sample study, the impact of raising the minimum wage on the level of employee welfare is statistically significant, but the impact degree and direction are different due to the differences in the enterprise\'s location, enterprise ownership and capital intensity.

Keywords： Minimum wage Employee welfare Difference-in-difference method