Minimum Wages and Employment in China

43 Pages Posted: 21 Dec 2013  

Tony Fang

York University - Atkinson School of Administrative Studies

Carl Lin

Bucknell University; IZA Institute of Labor Economics

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

JEL Classification: J38

Suggested Citation

Fang, Tony and Lin, Carl, Minimum Wages and Employment in China. IZA Discussion Paper No. 7813. Available at SSRN: https://ssrn.com/abstract=2370779

Tony Fang (Contact Author)

York University - Atkinson School of Administrative Studies ( email )

Toronto, Ontario M3J 1P3
Canada

Carl Lin

Bucknell University ( email )

1 Dent Drive
Lewisburg, PA 17837
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/profile?key=6255

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