PRD Salary Truth

As a typical cluster made in China, the large-scale research conducted in the Pearl River Delta may reveal many answers: why does continuous salary increase always make this generation of workers satisfied?

In addition to raising wages, what do they want?

In the Pearl River Delta region, what is the expected salary increase for workers at different duty stations?

What is the salary increase that coastal enterprises can meet?

What are the needs of workers for work and living environment besides salary increase?

In response to these needs,

In order to understand the series of problems raised by the salary increase and the important factors hidden behind the salary increase, it was launched by the Regional Economic Research Institute of the Southern Metropolis Daily. Professor Sloan, Professor of MIT School of management at Zhongshan University and Professor Guo Weiqing from the public affairs survey center of Zhongshan University, launched a series of research on the Pearl River Delta, which is "made in China", with a view to reflecting the problems and the core causes of the labor dimension as one of the important participants in the process of industrial upgrading in China through the investigation of the income expenditure of migrant workers in the Pearl River Delta.

The survey conducted in 2009 and 2010 in the Pearl River Delta, the most representative cities in Guangzhou, Shenzhen, Foshan, Dongguan, Zhuhai, respectively, conducted a large-scale questionnaire survey of 1500 samples, the following are some important achievements of the survey: 5

(1) the labor income level of the low income group has significantly improved, which strongly supports the reversal of labor supply and demand relationship.

In two years of research, we have looked at one of the most significant indicators, that is, the growth rate of income for low-income people.

The reason why this index is regarded as a priority item is that this index effectively excludes the increase in income caused by the improvement of personal ability, which can best reflect the general promotion of labor factor prices due to the pformation of labor supply and demand.

Based on the overall data, we extract the lowest income group of migrant workers, and call it the "base salary".

The benchmark wage is the average wage of female migrant workers with only junior middle school education or below, non skilled workers and non managerial personnel.

As can be seen from the table below, the benchmark wage of the low income group has increased considerably since 2008, especially since the second half of 2009.

(two) in the time of pay rise, there was a notable peak after the Spring Festival of 2010.

To understand the salary increase of enterprises, the questionnaire set up "since July 2009, where did you get a raise?"

This problem.

About 40% of respondents said that since July 2009, their enterprises have raised salaries.

Of these, 83.51% of the respondents gave them 1 pay increases and 13.62% of the enterprises had 2 pay increases.

To understand the time and magnitude of the increase in salary, the questionnaire set up the question of "the time of the first raise, the type and amount of increase", "the time of the last raise, the type and the amount of increase" and so on. The data show that the time for the increase in corporate wages is mainly concentrated in the first half of 2010 (especially in May) (see below).

In addition, the sample data of 2 times or more pay increases showed that the first increase was 15.65 percentage points higher than the original average increase of 236.88 yuan, and the last increase was 17.35 percentage points higher than the original average increase of 196.87 yuan.

Considering the average number of pay increases is 1.24, roughly estimated salary increases generally exceed 15%.

At the same time, we screened out the respondents who had increased salaries since July 2009, and found that the number of wage increases was around 600, but only 26 of them increased overtime pay.

The expectation of wages is the income that migrant workers hope to earn through work. Obviously, it is this indicator that affects the vision of migrant workers, the frequency of changing jobs, the willingness to pfer, and the possible labor disputes. Therefore, we specifically set up in the questionnaire, "how much money do you want to earn per month?"

This problem.

We will eliminate the "more and better" and "unclear" answers, and retain the exact samples of the respondents and analyze them.

The analysis found that migrant workers hope to earn an average of 4704.49 yuan per month, which is more than two times the current monthly average wage income (1952.21 yuan), and 63.2% of the respondents show "very dissatisfied" or "not satisfied" with the existing wage income.

In the sample with expected salary higher than the current monthly salary, the wage gap is derived from "expected salary - current monthly salary", and the average difference is found to be 2414.9 yuan.

According to the respondent's answer, "people who have similar conditions with them now earn an average of 1760.61 yuan a month", and 57% of them believe that they will not go out to work when they earn a certain income in their hometown.

In this set of data, we found that the foreign construction period was 4704 yuan in the coastal provinces, while in the rural areas it was only 2411 yuan.

This huge difference will obviously become a great attraction for enterprises to migrate to inland provinces.

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Two, these factors may be more important than wages.

"As long as the government is out, we are willing to build apartments for foreign workers."

Zhang Huarong, chairman of the shoe Godfather Huajian shoe industry, excitedly said to us about the difficulty of retaining skilled workers.

Why is there so much difference in the expected wages between migrant workers and their hometown in coastal provinces?

Perhaps the story of Huajian shoe workshop in Ganzhou, Jiangxi and Hunan Chenzhou can be solved by one or two.

Zhang Huarong told us that the factories they set up in Jiangxi Ganzhou and Hunan Chenzhou in the early years were only planning to produce low-end products. But two years later, he gradually found that these factories were recruiting workers nearby, which greatly reduced the mobility of the staff and led to more and more skilled workers. So he gradually pferred the middle and high-end production lines to the mainland.

(1) enterprises can not make up for the urban household registration system's arrears, instead of raising salaries with household registration benefits.

So what can inland provinces not only retain workers, but also make their income expectations far lower than those of coastal cities?

Through the analysis of the questionnaire data, we find that compared with wages, the gap between the rights of migrant workers and urban people caused by household registration is more depressing to their quality of life.

And the process of urbanization is not yet available for enterprises.

The survey data in 2010 showed that the per capita housing rents (including hydropower and fuel cost) per capita of migrant workers were 110.46 yuan and 119.28 yuan in the second half of 2009 and the first half of 2010 respectively, showing an increasing trend.

In the questionnaire, we set up "your housing area, the number of people living on the same floor, the same floor occupants and the spacing between buildings" and so on, hoping to reflect the living conditions of the migrant workers.

Data show that 39.3% of the respondents live in factory dormitories, followed by 33.6% of people living in Urban Village rental housing, and 20.7% of them live in residential rental housing.

In addition, 41.6% of housing rent is paid by units or other people, such as relatives and friends, so the housing expenditure of migrant workers is underestimated.

(see table below) showing the living conditions of migrant workers, the average housing area of migrant workers is about 9.61 square meters / person, and the density of floor occupants is relatively large.

We compare the situation of Guangzhou in 2009 with Guangzhou. The average per capita housing area of urban residents in 2009 is 20.93 square meters, much higher than that of migrant workers.

On the whole, the expenditure on culture and education shows a decreasing trend in the education of migrant workers' children.

In the questionnaire, we also set up the question of "how many children you have", "how many of them read in the city, how many in rural areas", "how much the children are studying in the city, how much they spend in rural areas".

Data show that in 2010, for example, the average child education in the city is 3955 yuan per semester, and the average monthly education expenditure for children is 659.2 yuan per month (6 months in one semester), which is equivalent to 1/3 of monthly average wage income, while in rural areas only 1043.8 yuan per semester is required, and the difference between them is nearly 3 times.

Against this background, from the situation of migrant workers' children attending schools, most children who go to school in cities attend private schools. According to the previous investigation conducted by the survey group in the schools for migrant workers' children, most of these schools have relatively poor teaching conditions, but they do not need to pay the sponsorship fees and other expenses in public schools.

From the perspective of migrant workers' children's school attendance, the effect of household registration policies such as settlement of migrant workers in recent years seems to be still not apparent.

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(two) the emergence of new generation of migrant workers, instead of raising salaries by humanized management.

The so-called new generation of migrant workers mainly refers to the young people born in 80s or even 90s.

In the development report of the State Council last year, we have specifically explored the new generation of migrant workers, and our research has described the new generation of migrant workers from a quantitative perspective.

The survey data show that the new generation of migrant workers have lower basic wages, shorter working years, and lower proportion of men, technical workers and managers. Although they have higher education level, in the five factors affecting wage level, the new generation of migrant workers has only one advantage, and the contribution of education to wage income is not the highest, so their wage level is also lower than that of the first generation of migrant workers.

There are no differences between the two generation of migrant workers in housing expenditure, food expenditure, travel expenses, health care expenditure, certificate fees, fines and other miscellaneous expenses.

However, there is a significant negative correlation between the year of birth and the monthly savings. The smaller the age, the less the savings.

At the same time, data show that in the case of reduced total cultural and educational expenditure, the monthly expenditure of cultural education for the new generation of migrant workers is only around 12 yuan, while the first generation of migrant workers is above 50 yuan, and the reason why the new generation of migrant workers' cultural education expenditure is obviously lower is mainly due to the increased proportion of unmarried women.

From the perspective of intergenerational differences, the proportion of unmarried children in the new generation of migrant workers is much higher than that of the first generation of migrant workers.

Besides, the intergenerational difference is obvious in terms of leisure and entertainment expenditure.

The new generation of migrant workers' spending on entertainment and entertainment is higher than that of the first generation of migrant workers, and the growth rate is higher than that of the first generation of migrant workers.

In order to understand the significance of these data and our visit to the labour market in Dongguan, Huang Jing, manager of Houjie Town's labor market, pointed out that the tolerance of the new generation to hard living conditions decreased significantly.

Huang Jing thought, "after 90s, migrant workers who worked in Dongguan were 70, the general family conditions were very poor. They could bear the relatively large intensity of work and strict factory discipline. After 80 years, the migrant workers began to have family burden because they were mostly married and had children, so they were more willing to stay in Dongguan. But after 90 years, they had the tendency of independent unemployment. Relatively speaking, the new generation of migrant workers had fully adapted to the way of life in the city, and they were more inclined to live in the city than the money earned.

In this regard, the traditional paramilitary management mode of the Pearl River Delta has completely failed to adapt to the psychological needs of the new generation of migrant workers.

With the pursuit of individuality, there is also the luxury of life and the mindset of work.

As a result, many Taiwanese and Hong Kong funded enterprises have changed their strict management models and begun to turn to humanized management, such as improving the flexible arrangement system for vacations, relaxing the management of incoming and exits, allowing or even encouraging employees to fall in love.

In the Foxconn research we arranged for Professor Chen Zhiwu, we even found that Foxconn began to conduct talent talent show activities through the way of holding "super men and girls", and added the "speed matching" link.

The "husband and wife housing" is also developing in all enterprises.

(three) reducing the cost of land and social security: moving to inland provinces

In the above analysis, it is not difficult to find that household registration discrimination is an important reason for the welfare loss of migrant workers in education, medical treatment and housing, and these problems do not exist in the central cities near the domicile of migrant workers.

Moreover, in the inland provinces, many local governments are competing to reduce land and tax costs to attract enterprises to move inland.

Therefore, for large enterprises with a complete industrial chain, it is a good choice to open factories in inland provinces.

But this move is not applicable to all enterprises.

First of all, the cost of labor will not drop too much, because for the PRD manufacturing industry, labor costs account for only about 15% of the total cost, and the cost of internal migration is only 10% lower.

15%.

Secondly, the migration of single enterprises often brings about a sharp drop in the agglomeration effect of the industrial chain, and the cost of pportation and logistics has greatly increased.

Therefore, the migration of enterprises is always the chain of the whole industry. There are few individual enterprises moving. If it is a single enterprise, it must be Foxconn, which has the advantage of negotiation and has the effect of agglomeration.

These enterprises often encircles large areas, and raise land prices by stimulating employment and local economy, but do not care how much money the factories earn in the short term.