Minimum Wages in China, 1st ed. 2020 Evolution, Legislation, and Effects

This book considers the positive and negative impacts of the minimum wage policy in China. Since China enacted its first minimum wage law in 1994, the magnitude and frequency of changes in the minimum wage have been substantial, both over time and across jurisdictions. The results from China?s experience show that rapidly increasing minimum wages have helped increase average wages and reduce the gender wage gap, income inequality, and poverty. However, the fast-rising minimum wage has also resulted in the loss of employment for young adults, women, low-skilled workers, and migrant workers. Additionally, higher minimum wages have a negative impact on firm profitability and adverse effects on firm?s human capital investment. In summary, the Chinese minimum wage policy has shown both positive and negative impacts on the affected workers. Through unpacking these findings, the book highlights the importance of rigorous research to inform evidence-based policymaking and provides lessons for other transitional and developing economies.

1. Introduction and Overview.- 2. Evolution and Effects Assessment of China’s Minimum Wage Policy.- 3. Minimum Wages in China: Standard and Implication.- 4. Minimum Wages and Employment in China.- 5. Impacts of Minimum Wages on Gender Wage Gaps in Urban China.- 6. The Impact of Minimum Wages on Migrant Workers’ Wages.- 7. The Effects of the Minimum Wage on Earnings Inequality: Evidence from China.- 8. The Effects of Minimum Wage Regulations on Wage Growth and Its Distribution in China.- 9. Compliance with Legal Minimum Wages in China.- 10. Estimating the Effect of Minimum Wages on Firm Profitability in China.- 11. How Does the Minimum Wage Affect Firm Investments in Fixed and Human Capital? Evidence from China.- 12. Regional Variation of the Minimum Wages in China.- 13. Minimum Wage Competition between Local Governments in China.- 14. Minimum Wage Effects on Employment and Working Time of Chinese Workers.

Li Shi is Professor of Economics in the School of Public Affairs at Zhejiang University, China. 

Carl Lin is an Assistant Professor of Economics at Bucknell University in Pennsylvania, USA.