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A study of the anti-poverty effect of minimum wage in underdeveloped areas: based on the perspective of farmers’ employment choices and income

Author

Listed:
  • Enmeng Liu
  • Yurui Jiang
  • Qin Zhang
  • Lei Yan
  • Jiapeng Liu

Abstract

The minimum wage can play an active role in anti-poverty. The theoretical analysis and simulation find that a higher minimum wage can increase farmers’ employment intention and income, and has a more obvious effect on low-income farmers. Statistics from questionnaire surveys in three districts in the western China show that a higher minimum wage will promote farmers who leave behind in hometown to work in local enterprises. The minimum wage has both direct and indirect effects on the income of households with low awareness of increasing income, and both are positive. Further statistical analysis revealed that farmers in these areas have great needs for employment training and entrepreneurship support. So, if the government would support local enterprises, encourage entrepreneurship and supervise the implementation of minimum wage standards, this can provide support for anti-poverty initiatives.

Suggested Citation

  • Enmeng Liu & Yurui Jiang & Qin Zhang & Lei Yan & Jiapeng Liu, 2025. "A study of the anti-poverty effect of minimum wage in underdeveloped areas: based on the perspective of farmers’ employment choices and income," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 30(1), pages 1-18, January.
    • Handle: RePEc:taf:rjapxx:v:30:y:2025:i:1:p:1-18
    DOI: 10.1080/13547860.2023.2186024
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