Minimum wages and employment in China

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IDL-55295.pdf (1.01 MB)

Date

2015

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Publisher

Springer

Abstract

Since China promulgated new minimum wage regulations in 2004, the frequency and magnitude of changes in minimum wages have been substantial. This paper uses county-level minimum wage data combined with urban household survey micro-dataset from 16 representative provinces as a merged county-level panel to estimate the employment effects of minimum wage changes in China over the 2002–2009 period. In contrast to the mixed results reported by previous studies using provincial-level data, we present evidence that minimum wage changes led to significant adverse effects on employment in the Eastern and Central regions of China, and resulted in disemployment for females, young adults, and low-skilled workers.

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Keywords

YOUTH UNEMPLOYMENT, MINIMUM WAGE, ECONOMIC IMPLICATIONS, UNSKILLED WORKERS, LABOUR MARKET, ECONOMETRIC ANALYSIS, PLANNED ECONOMY

Citation

Fang, T., & Lin, C. (2015). Minimum wages and employment in China. IZA Journal of Labor Policy, 4(22), 1-30. doi:10.1186/s40173-015-0050-9

URI

http://hdl.handle.net/10625/55295

DOI

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IDRC Research Results / Résultats de recherches du CRDI
2010-2019 / Années 2010-2019
Research Results (SIG) / Résultats de recherches (CPT)