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    People'S University Reports That China Will Face Rising Wages.

    2010/9/27 11:49:00 39

    Wage Rise

    Renmin University of China researchers believe that China will continue to accelerate in the next 5 years. Marketization Wages are rising. Under the accelerating urbanization process, further industrialization and institutional reform, wage increases, wage retention and wage and labor productivity will rise simultaneously. All these factors determine that China will face a new period of relatively fast wage growth in the medium term.


    China's macroeconomic analysis and forecasting report (the three quarter of 2010) was jointly published by the Institute of economics, Renmin University of China and the Donghai securities company. The theme is the adjustment of China's economic structure under the change of wage formation mechanism. According to the report, the wage formation mechanism in China's low-end labor market is changing from the traditional "Survival Wage pricing law" to "the rule of market bargaining under the reservation of wages".


    The report predicts that the continued wage increase in the future will not be affected by the continuous improvement in the efficiency of China's labor market, the continued decline in the proportion of residents' disposable income in national income and the high degree of dependence on China's trade. Chinese manufacturing industry The overall competitive advantage will not be inflationary pressure in the near future.


    The report says the wage formation mechanism is changing to China. Adjustment of economic structure It has important strategic significance: firstly, labor relations will undergo profound changes and bring about changes in the pattern of income distribution. This will provide new opportunities for China to usher in the turning point of Kuznets's inverted U curve, and provide new possibilities for narrowing the difference in income distribution. It will promote the spanformation of China's economic growth mode from external demand to domestic demand drive, investment drive to consumption drive.


    "(rising labor prices) will help to change the existing deep-seated structural difficulties." The report points out that the reform of wage formation mechanism will fundamentally change the relationship between labor and capital and change the situation that wage rises lag behind the rise in national income. This will revolutionize the initial distribution of China's national income. In addition, the rise of wage in the low end labor market will have different effects on the production costs of different regions, so that all kinds of traditional industries will accelerate the "gradient spanfer" to the Midwest under the promotion of regional cost differences, leaving the eastern part with room for industrial upgrading.


    In addition, the relationship between workers and peasants and the relationship between urban and rural areas will change. The change of factor price ratio will promote the upgrading of industrial structure, and China will also step into the acceleration period of human capital investment.


    "The rapid rise of wage level will fundamentally change the ratio of prices of all kinds of factors in China, so that market participants can spontaneously replace elements, adopt technology intensive and capital intensive production methods, and promote enterprises to improve their own R & D and technological progress so as to enhance their core competitiveness." The report points out.

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