Hidden Bibliographic Details
| Other authors / contributors: | Loungani, Prakash, author.
Wang, Gewei, author.
International Monetary Fund. Research Department, issuing body.
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| ISBN: | 9781484379653
1484379659
1498338984
9781498338981
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| Notes: | "October 2014."
"Research Department."
Includes bibliographical references (pages 22-25).
Online resource; title from pdf title page (IMF.org Web site, viewed October 20, 2014).
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| 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 "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 significant negative impact on employment, with an estimated elasticity of -0.1. Furthermore, we find a heterogeneous effect of the minimum wage on employment which depends on the firm's wage level. Specifically, the minimum wage has a greater negative impact on employment in low-wage firms than in high-wage firms. Our results are robust for different treatment groups, sample attrition correction, and placebo tests.--Abstract.
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| Other form: | 1498332307
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| Standard no.: | 9781484379653
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