Xiuze: Minimum wage increase does not cause unemployment

Beijing television's financial channel, "The Key to the year 2010, the first quarter", is hit. Professor Xiuze, a renowned economist, pointed out that in the initial allocation area.　　The government should set a "minimum wage standard". "A civilized society is the structure of a golden Triangle," Professor Xiuze in response to Wang Fu's view that "the government set a minimum wage to create unemployment". The so-called Golden Triangle refers to the government, labor and management, in the initial distribution area, the government "should establish a worker's minimum wage guarantee line." In the field of initial distribution, it should specify the minimum number, not less than the number, such as Beijing's minimum monthly wage should not be less than 960 yuan. Professor Wang Fu responded that "in the initial distribution, the labour market should be the solution, and the Government should not look into the matter." In this respect, Professor Xiuze said, "Initial distribution is a relationship between the owner of the factors, is a game between workers and capital owners, the main workers and management of the market." However, the Government should play a role in setting the minimum wage protection line, and if it is uncertain, I think it is negligent. However, after the minimum line, the enterprise with the management to how much, talk about how much, the final wage to achieve how much, this is in the market competition between the two sides bargain results. Professor Suhainan, vice President and chairman of the remuneration committee of the China Institute of Labor, expressed support for Professor Chang's view that "a minimum wage and a modest wage standard will not result in unemployment." Because theoretically, there is no theory that this will certainly cause unemployment. "Of the world's more than 170 countries, 80% of the countries have achieved the minimum wage, in practice there is no problem of unemployment." "In the initial distribution, the market will work, but the government has to do something that it should do, such as enacting relevant laws and regulations." Xiuze is a famous economist and former deputy director of the State Planning Commission's economy. Suhainan is the vice president of China Labor Society and Chairman of Remuneration Professional Committee, former director of Labor and Wages Institute of Human Resources and social security. Wang Fu is director of the Center for Government and Economic Studies at the Central University of Finance and Economics.