Minimum wage and internal labor migration: Evidence from China

Shuang Ma, Xuan Li and Xi Wu

Journal of Economic Behavior & Organization, 2024, vol. 226, issue C

Abstract: We study the geographical allocation consequences of minimum wage, using individual-level migration data and the substantial variation over time in minimum wages across 262 counties in China. Our preferred specification shows that a 10% increase in the local minimum wage decreases the probability of outmigration by 1.52 percentage points. Using data from a major online recruitment platform, we further corroborate the main finding by showing that workers are less likely to search for a job in other cities when their city of residence experiences an increase in minimum wage.

Keywords: Minimum wage; Labor migration; Low-wage workers; China (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:226:y:2024:i:c:s0167268124003019

DOI: 10.1016/j.jebo.2024.106695

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