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Minimum Wages and Firm Employment.

Author: Yi Huang; Prakash Loungani; Gewei Wang
Publisher: Washington : International Monetary Fund, 2014.
Series: IMF Working Papers.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
This paper provides the first systematic study of how minimum wage policies in China affect firm employment over the 2000-2007 periods. Using a novel dataset of minimum wage regulations across more than 2,800 counties matched with firm-level data, we investigate both the effect of the minimum wage and its policy enforcement tightening in 2004. A dynamic panel (difference GMM) estimator is combined with a  Read more...
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Genre/Form: Electronic books
Additional Physical Format: Print version:
Huang, Yi.
Minimum Wages and Firm Employment: Evidence from China.
Washington : International Monetary Fund, ©2014
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Yi Huang; Prakash Loungani; Gewei Wang
ISBN: 9781498379311 1498379311
OCLC Number: 911001090
Description: 1 online resource (48 pages).
Contents: Cover; Contents; 1 Introduction; 2 Institution Background: Minimum Wage in China; 2.1 Evolution of China's Minimum Wage Policy; 3 Data; 3.1 Minimum Wages; 3.2 Firm Data; 3.3 Macroeconomic Factors; 3.4 Geography and Neighbor Counties; 4 Theoretical Background; 4.1 Labor Demand; 4.2 Labor Supply; 5 Identification and Empirical Framework; 5.1 Minimum Wage Determination; The Adjustment of Local Minimum Wages; The Determinants of Local Minimum Wages; 5.2 Neighbor County Pairs; 5.3 Empirical Model; Variables Related to Firm Employment; 6 Main Results; 6.1 Impact of Minimum Wages at the Firm Level. The Average Elasticity and Enforcement TighteningThe Effect of Minimum Wages on Firm Employee Wages; 6.2 Heterogeneous Effects; Grouping Based on Firm Wages; Full Set of Heterogeneous Characteristics; 7 Robustness Checks; 7.1 Dummy Variable of Treatment; 7.2 Sample Attrition; 7.3 Placebos; 8 Conclusion; A: Variable List.
Series Title: IMF Working Papers.

Abstract:

This paper provides the first systematic study of how minimum wage policies in China affect firm employment over the 2000-2007 periods. Using a novel dataset of minimum wage regulations across more than 2,800 counties matched with firm-level data, we investigate both the effect of the minimum wage and its policy enforcement tightening in 2004. A dynamic panel (difference GMM) estimator is combined with a "neighbor-pairs-approach" to control for unobservable heterogeneity common to "border counties" that are subject to different minimum wage changes. We show that minimum wage increases have a s.

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