Minimum Wages and Employment in China

Tony Fang and Carl Lin

No 7813, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Since China promulgated new minimum wage regulations in 2004, the magnitude and frequency of changes in the minimum wage have been substantial, both over time and across jurisdictions. This paper uses county-level minimum wage panel data and a longitudinal household survey from 16 representative provinces to estimate the employment effects of minimum wage changes in China over the period of 2004 to 2009. In contrast to the mixed results of previous studies using provincial-level data, we present evidence that minimum wage changes have significant adverse effects on employment in the Eastern and Central regions of China, and result in disemployment for females, young adults, and low-skilled workers.

Keywords: minimum wage; China; employment (search for similar items in EconPapers)
JEL-codes: J38 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2013-12
New Economics Papers: this item is included in nep-cna, nep-lab, nep-lma and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

Published - published in: IZA Journal of Labor Policy, 2015, 4:22, 1-30

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Journal Article: Minimum wages and employment in China (2015)
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