 DETERMINING MINIMUM WAGES IN CHINA: DO ECONOMIC FACTORS DOMINATE?Christian Dreger, Reinhold Kosfeld () and Yanqun Zhang Review of Urban & Regional Development Studies, 2019, vol. 31, issue 1-2, 44-59 Abstract: We analyze the determinants of minimum wages in China at the regional level. We include a broad set of economic variables and consider the role of spatial spillovers, which reflect the geographical pattern of regions and can arise for several reasons, including competition between local policymakers. The analysis primarily reveals the existence of strong regional ties in the development of minimum wages. Once these spatial effects are considered, the role of economic variables in the determination of minimum wages declines, and their impact is lower than initially thought. Whereas consumption per capita and consumer prices remain significant, regular wages lose their importance when controlling for reverse causation. Although minimum wage regulation stresses the relevance of economic factors in the determination of appropriate levels, actual development is largely driven by regional dependencies. As minimum wage standards set by local officials do not fully reflect regional economic conditions, further reform should be on the agenda. Date: 2019 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:revurb:v:31:y:2019:i:1-2:p:44-59 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Review of Urban & Regional Development Studies from Wiley Blackwell |
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