The Internal Cause of the Upswing of Chinese Enterprises’ Salary— The Inflection Point of Lewis

Abstract

Recently, the upsurge in the upward adjustment of wages in the society has emerged. On the surface, it is the reform of the distribution system to conform to the wealth of the public. Because at this time, the separation between rich and poor has become a constraint for further growth. However, we have seen that the number of laborers has decreased, the marginal products of laborers have increased, the labor force has begun to have limited surplus, and the era of unlimited supply of labor force has come to an end. At the same time, the income of laborers is gradually no longer just to maintain the income of survival. At this time, the demand for social needs and respect for the workers began to increase. The level of demand has started to rise. The wages of ordinary workers have risen, and wages for Chinese enterprises have increased. The changes have brought great influence. In general, the reproduction of the labor force has its inherent laws. However, the family planning policy implemented by China in the past three decades and the subsequent economic and social development have changed China’s demographic structure and brought China into an aging society ahead of schedule. Under this premise, the Chinese economy has continuously ushered in the "migrant workers shortage," and under the tight supply of labor, wages have risen and are difficult to suppress. In the light of various evidences such as changes in the demographic structure, labor transfer, labor supply and demand, income changes, and wage adjustments, China has quietly crossed the Lewis turning point at some point in 2006-2010.