Compliance with legal minimum wages and overtime pay regulations in China

Date

2015

Journal Title

Journal ISSN

Volume Title

Publisher

Springer

Abstract

A matched firm-employee data set is used to examine the extent of compliance with minimum wage and overtime pay regulations in Chinese formal sector firms. Evidence shows that there is broad compliance with legal minimum wages in China; fewer than 3.5% of full-time workers earn less than the legal monthly minimum wage. On the other hand, there is substantial non-compliance with overtime pay regulations; almost 29% of the employees who work overtime are not paid any additional wage for overtime hours, and 70% are paid less than the legally-required 1.5 times the regular wage.

Description

Keywords

MINIMUM WAGE, OVERTIME, LOCAL LEVEL, LABOUR INSPECTIONS, WAGE DISPARITY, SOCIAL SECURITY

Citation

Linxiang Ye, Th Gindling, & Shi Li (2015). Compliance with legal minimum wages and overtime pay regulations in China. IZA Journal of Labor & Development, 4(16), 1-35. doi:10.1186/s40175-015-0038-2

DOI