How do minimum wage adjustments affect wages in China evidence based on administrative personal income tax data Langchuan Peng, Xiaxin Wang and Daixin He
By: Peng, Langchuan
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Contributor(s): Wang, Xiaxin | He, Daixin.
Material type: 
ArticlePublisher: 2019Subject(s): IMPUESTOS | RENDIMIENTOS DE TRABAJO | SALARIO MINIMO | CHINA | MODELOS ECONOMETRICOS
In:
Contemporary Economic Policy v. 37, n. 2, April 2019, p. 349-365Summary: By using unique administrative personal income tax data covering the population of a middle‐sized Chinese city from 2009 to 2013, we explore how minimum wage adjustments affect wages of low‐wage workers. The empirical evidence documented in this paper suggests a unique pattern of minimum wage regulation: while it permits wages to stay below the prevailing minimum wage threshold temporarily, it does encourage a higher growth rate for wages below the threshold. Overall, such a pattern might help lessen any downward pressures on employment, while ensuring that low‐wage earners gradually get better off over time.
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| OP 1634/2019/1 Contemporary Economic Policy | OP 1634/2019/2 Contemporary Economic Policy | OP 1634/2019/2-1 Do tax cuts encourage rent seeking by top corporate executives ? | OP 1634/2019/2-2 How do minimum wage adjustments affect wages in China | OP 1634/2019/2-3 Structural change through public education expenditure | OP 1634/2019/3 Contemporary Economic Policy | OP 1634/2019/3-1 Who pays no tax ? |
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By using unique administrative personal income tax data covering the population of a middle‐sized Chinese city from 2009 to 2013, we explore how minimum wage adjustments affect wages of low‐wage workers. The empirical evidence documented in this paper suggests a unique pattern of minimum wage regulation: while it permits wages to stay below the prevailing minimum wage threshold temporarily, it does encourage a higher growth rate for wages below the threshold. Overall, such a pattern might help lessen any downward pressures on employment, while ensuring that low‐wage earners gradually get better off over time.
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