Abstract: This paper is an empirical study on the relationship between collective wage consultation system and enterprise employment scale based on enterprise survey data in Hangzhou in 2012. It is found that collective wage consultation system has a significant and robust positive effect on expanding the scale of enterprise employment. And endogenous test shows that there is no significant self-selectivity problem in whether enterprises implement the system or not. Further estimates find that this positive effect occurs mainly in private enterprises, manufacturing enterprises, and low-income enterprises, which are the fields where weak labor and weak capital combine, and make no significant effect on other types of enterprises. Therefore, it is important to promote the development of the system with more specific targets and flexibility.