Minimum Wages and Firm Employment : Evidence from China /

This paper provides the first systematic study of how minimum wage policies in China affect firm employment over the 2000-2007 periods. Using a novel dataset of minimum wage regulations across more than 2,800 counties matched with firm-level data, we investigate both the effect of the minimum wage a...

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Detalles Bibliográficos
Autor Principal: Huang, Yi
Outros autores: Loungani, Prakash, Wang, Gewei
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2014.
Series:IMF Working Papers; Working Paper ; No. 2014/184
Acceso en liña:Full text available on IMF
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245 1 0 |a Minimum Wages and Firm Employment :   |b Evidence from China /  |c Yi Huang, Prakash Loungani, Gewei Wang. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2014. 
300 |a 1 online resource (47 pages) 
490 1 |a IMF Working Papers 
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520 3 |a This paper provides the first systematic study of how minimum wage policies in China affect firm employment over the 2000-2007 periods. Using a novel dataset of minimum wage regulations across more than 2,800 counties matched with firm-level data, we investigate both the effect of the minimum wage and its policy enforcement tightening in 2004. A dynamic panel (difference GMM) estimator is combined with a 'neighbor-pairs-approach' to control for unobservable heterogeneity common to 'border counties' that are subject to different minimum wage changes. We show that minimum wage increases have a significant negative impact on employment, with an estimated elasticity of -0.1. Furthermore, we find a heterogeneous effect of the minimum wage on employment which depends on the firm's wage level. Specifically, the minimum wage has a greater negative impact on employment in low-wage firms than in high-wage firms. Our results are robust for different treatment groups, sample attrition correction, and placebo tests. 
538 |a Mode of access: Internet 
700 1 |a Loungani, Prakash. 
700 1 |a Wang, Gewei. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2014/184 
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