<strong>Paper Title</strong><br>
The Impact of The Guaranteed Minimum Wage System on Consumer Consumption of Low-Income Groups<br>
<br>

<strong>Abstract</strong><br>
Expanding domestic demand can help China achieve diversified and sustainable development, reduce dependence
on export markets and drive industrial upgrading, improve people's livelihood and promote social equity and stability, of which
the key core is to smooth the domestic and foreign economic cycles and drive consumption comprehensively. The study of
consumption behavior of low-income households can tap the potential of consumption growth, improve the level of social
consumption and economic development, and thus promote the prosperity and stability of the whole society. after the full
implementation of the minimum wage guarantee system in 31 provinces and cities in China in 2004, the minimum wage
standard in all regions has been maintained at a high rate of increase, which has played an important role in the protection of
some workers' rights and interests in China. This paper examines the impact of minimum wage increase on the consumption
expenditure of low-income people from the perspective of consumption level of low-income households, using micro data of
CHFS households from 2015-2019, and concludes that the increase of minimum wage will raise the overall income level of
low-income households, but the effect of this increase is small and cannot offset the loss of consumption level of low-income
households, and the possible causes of this phenomenon are Finally, we propose corresponding policy recommendations based
on the real situation, which is of great theoretical and practical significance.
Keywords - Minimum Wage Guarantee; Low-Income Households; Consumption