EconPapers    
Economics at your fingertips  
 

The Consumption Response to Minimum Wages: Evidence from Chinese Households

Ernest Dautovic (), Harald Hau () and Yi Huang

No 12057, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper evaluates the Chinese minimum wage policy for the period 2002-2009 in terms of its impact on low income household consumption. Using a representative household panel, we find support for the permanent income hypothesis, whereby unanticipated and persistent income increases due to minimum wage policy change are fully spent. The impact is driven by households with at least one child. We infer significant positive welfare effects for low income households based on expenditure increases concentrated in health care and education, whereas a negative employment effect of higher minimum wage cannot be confirmed.

Keywords: Household consumption; Labor income; minimum wage; Permanent income hypothesis (search for similar items in EconPapers)
JEL-codes: C26 E24 J38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lma, nep-mac and nep-tra
Date: 2017-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=12057 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: The Consumption Response to Minimum Wages: Evidence from Chinese Households (2017) Downloads
Working Paper: The Consumption Response to Minimum Wages: Evidence from Chinese Households (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:12057

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=12057

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-09-03
Handle: RePEc:cpr:ceprdp:12057