IDEAS home Printed from https://ideas.repec.org/a/eee/chieco/v88y2024ics1043951x24001998.html
   My bibliography  Save this article

The effects of monthly minimum wages on the labor market

Author

Listed:
  • Yang, Zhengxiong
  • Liu, Mingwei
  • Zhang, Shiwei
  • Yin, Chenxi

Abstract

We explore the labor market impact of monthly minimum wages utilizing a model suitable for countries adopting monthly, weekly, or daily wage benchmarks. Our findings indicate that, in the absence of overtime regulations, an increase in monthly minimum wages will increase working hours and hourly wages and increase (or decrease) employment when the firm has high (or low) monopsony power. When incorporating overtime alongside its associated compensation, the implications of monthly minimum wages become contingent on the prevailing overtime premiums. We validate these assertions using microdata from China.

Suggested Citation

  • Yang, Zhengxiong & Liu, Mingwei & Zhang, Shiwei & Yin, Chenxi, 2024. "The effects of monthly minimum wages on the labor market," China Economic Review, Elsevier, vol. 88(C).
  • Handle: RePEc:eee:chieco:v:88:y:2024:i:c:s1043951x24001998
    DOI: 10.1016/j.chieco.2024.102310
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1043951X24001998
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.chieco.2024.102310?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Monthly minimum wages; Labor market effects; Monopsony; Overtime premiums; China;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:88:y:2024:i:c:s1043951x24001998. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/chieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.