A research on minimum wage standard based on econometric model in China

In this paper the econometric models is employed to determine the minimum living requirements (or poverty lines) of workers in China. Comparison between the actual minimum wage levels implemented by the Chinese government and the estimated minimum living requirements in this paper reveal that, in early 2010, workers in 18 out of 35 sample cities were paid minimum wages below the estimated lowest poverty line. This group of workers is unable to afford minimum payments to meet basic living conditions for survival as their minimum wages were below the estimated survival line. Related advice are addressed to the Chinese government to protect employee for basic living needs.