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Minimum Wage and Wage Distribution

In: Labor Market Institutions in China

Author

Listed:
  • Xinxin Ma

    (Hosei University)

Abstract

The minimum wageMinimum wage policy is an important labor policy that has been implemented in many countries worldwide to ensure the survival of workers. The Chinese minimum wageMinimum wage policy was first promulgated in 1993. Using national longitudinal survey dataLongitudinal survey data from the China Family Panel StudiesChina Family Panel Studies (CFPS) from 2010 to 2020 and employing the Neumark modelNeumark model, this study examines the impact of minimum wageMinimum wage on wage distributionWage distribution in ChinaChina. Three key conclusions emerge. First, the minimum wageMinimum wage significantly increases the wage levels of the low-wage group that earns less than the minimum wageMinimum wage. This suggests the persistence of the minimum wageMinimum wage spike effectSpike effect in ChinaChina. Second, the minimum wageMinimum wage increases the wages of individuals earning two to three times the minimum wageMinimum wage, indicating a spillover effectSpillover effect. Third, the effects of minimum wageMinimum wage on wage distributionsWage distribution vary among heterogeneous groups. For instance, the minimum wageMinimum wage spike effectSpike effect among women, urban hukouHukou workers, public sectorPublic sector workers, and those in the service or retail sectors is more pronounced than that among their counterparts (men, rural migrantsMigrants, private sectorPrivate sector workers, and those in the manufacturing sectorManufacturing sector). Conversely, the spillover effectSpillover effect is notably more significant among men, rural migrantsMigrants, private-sector workers, and those in the service or retail sectors than their counterparts.

Suggested Citation

  • Xinxin Ma, 2024. "Minimum Wage and Wage Distribution," Springer Books, in: Labor Market Institutions in China, chapter 0, pages 43-80, Springer.
    • Handle: RePEc:spr:sprchp:978-981-97-6156-2_3
    DOI: 10.1007/978-981-97-6156-2_3
    as

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