Effect of minimum wage regulation on wage growth and its distribution in China

Date

2014-05

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Abstract

Because of labour market policies such as employment protection regulation, labour contract law and minimum wage policies, the already disadvantaged have benefitted very little from rapid economic growth in the past years. In general, our evidence supports the view that minimum wage policies create a substitute effect for low-paid workers, as they experience a small wage growth under the cost of more unemployment. Using the China Household Income Project survey data, this paper examines the effects of minimum wage regulation on wage growth and wage distribution in China.

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Keywords

LABOUR MARKET, MINIMUM WAGE, INCOME DISTRIBUTION, HOUSEHOLD INCOME, ECONOMETRIC ANALYSIS, WAGE POLICY, UNEMPLOYMENT

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