Quantitative Analysis of Relationship between "Three Lines" in Shanghai

Minimum living standard, minimum wage standard and unemployment insurance constitute the basic framework of "Three Lines" in Shanghai. In this paper, quantitative relationship between the three is analyzed. At present, most families refuse to quit from subsistence allowances because they don\´t want to lose fringe benefits. This will weaken economic motivation for employment. Thus, government should not only guarantee people\´s basic lives, but also encourage low-income people to participate in employment actively.