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Book Cover
E-book
Author Huang, Yi, author

Title Minimum wages and firm employment : evidence from China / prepared by Yi Huang, Prakash Loungani, and Gewei Wang
Published [Washington, D.C.] : International Monetary Fund, ©2014

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Description 1 online resource (47 pages) : color illustrations, maps
Series IMF working paper ; WP/14/184
IMF working paper ; WP/14/184.
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."
"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
Wages -- Government policy -- China
Labor market -- China
Labor market
Minimum wage
Wages -- Government policy
China
Form Electronic book
Author Loungani, Prakash, author.
Wang, Gewei, author.
International Monetary Fund. Research Department, issuing body.
ISBN 9781484379653
1484379659
1498338984
9781498338981