Estimating the effect of minimum wage on firm profitability in China

Date

2016

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Abstract

The inconclusiveness of the impact of minimum wage policy in China has not only direct effects on wage levels but also indirect effects on employment, wages and firm profits. This paper analyses the long and short term effects of minimum wages on firm profitability over time, using a quantile dynamic panel model.

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Keywords

MINIMUM WAGE, ECONOMETRIC ANALYSIS, PROFITABILITY, SURVEYS, PLANNED ECONOMY, POLICY MAKING, SOCIALIST COUNTRIES, WAGE POLICY

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