Description |
1 online resource (47 pages) : color illustrations, maps |
Series |
IMF working paper ; WP/14/184 |
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IMF working paper ; WP/14/184.
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Summary |
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.--Abstract |
Notes |
"October 2014." |
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"Research Department." |
Bibliography |
Includes bibliographical references (pages 22-25) |
Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed October 20, 2014) |
Subject |
Minimum wage -- China
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Wages -- Government policy -- China
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Labor market -- China
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Labor market
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Minimum wage
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Wages -- Government policy
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China
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Form |
Electronic book
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Author |
Loungani, Prakash, author.
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Wang, Gewei, author.
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International Monetary Fund. Research Department, issuing body.
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ISBN |
9781484379653 |
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1484379659 |
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1498338984 |
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9781498338981 |
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