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Minimum wage and internal labor migration: Evidence from China

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  • Ma, Shuang
  • Li, Xuan
  • Wu, Xi

Abstract

We study the geographical allocation consequences of minimum wage, using individual-level migration data and the substantial variation over time in minimum wages across 262 counties in China. Our preferred specification shows that a 10% increase in the local minimum wage decreases the probability of outmigration by 1.52 percentage points. Using data from a major online recruitment platform, we further corroborate the main finding by showing that workers are less likely to search for a job in other cities when their city of residence experiences an increase in minimum wage.

Suggested Citation

  • Ma, Shuang & Li, Xuan & Wu, Xi, 2024. "Minimum wage and internal labor migration: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 226(C).
    • Handle: RePEc:eee:jeborg:v:226:y:2024:i:c:s0167268124003019
    DOI: 10.1016/j.jebo.2024.106695
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    References listed on IDEAS

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