Author ORCID Identifier

Jinlan Ni

Document Type

Article

Publication Date

12-9-2014

Publication Title

The Chinese Economy

Volume

44

Issue

1

First Page

18

Last Page

38

Abstract

This article examines the impact of the minimum wage on employment in China using data from 2000 to 2005. The effect of the minimum wage on employment levels was found to be mixed. Overall, minimum wages have no significantly adverse effect on employment. In particular, the results in the eastern region of China indicate few significant negative effects, which is consistent with the minimum wage theory in the competitive market. In contrast, the central and western regions experience few significantly positive effects, which is consistent with the theory in the monopsony model. The results are robust regardless of ownership (non-state-owned enterprises, collectives, private enterprises, and other types), industry type (manufacturing, wholesale and retail trade, hotel and restaurant), and gender of workers. Low real minimum wages, weak enforcement capabilities, and the buyer's labor market—the three factors that may account for the effects of minimum wages on employment in China—are analyzed.

Comments

This is an Accepted Manuscript of an article published by Taylor & Francis in THE CHINESE ECONOMY on 9 December 2014, available online: https://www.tandfonline.com/doi/abs/10.2753/CES1097-1475440102.

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