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Minimum Wage Impacts on Inequality, Job Formality and the Ethnic Wage Gap in Urban China

Minimum Wage Impacts on Inequality, Job Formality and the Ethnic Wage Gap in Urban China
Author: Anthony Howell
Publisher:
Total Pages: 45
Release: 2017
Genre:
ISBN:

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This paper examines the effects of a minimum wage on wage inequality and employment outcomes in China's urban minority regions and whether those effects vary for Han and ethnic minorities. Minimum wage data is combined with a proprietary datasource obtained from China's Household Ethnic Survey (CHES) project. Results reveal that a higher minimum wage reduces wage inequality and leads to larger positive effects for lower-wage minority workers compared to their Han counterparts. In terms of employment, a higher minimum wage promotes formalization of the labour market without any evidence of adverse effects on the likelihood of being unemployed in the formal sector, although some adjustments are made at the intensive margin. The results are robust to alternate estimations that take into account censoring and endogeneity. The findings' policy implications indicate that the minimum wage is an effective social policy tool that reduces the Han-minority wage gap, as well as induces non-wage benefits, which in turn, should promote social cohesion in China's urban minority regions.


Minimum Wages in China

Minimum Wages in China
Author: Shi Li
Publisher: Springer Nature
Total Pages: 392
Release: 2020-05-25
Genre: Business & Economics
ISBN: 9811524211

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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.


Minimum Wage Impacts on Wage Inequality, Employment and Job Formality in China's Lagging Ethnic Minority Regions

Minimum Wage Impacts on Wage Inequality, Employment and Job Formality in China's Lagging Ethnic Minority Regions
Author: Anthony Howell
Publisher:
Total Pages: 0
Release: 2023
Genre:
ISBN:

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This paper examines the effects of a minimum wage on wage inequality and employment outcomes in China's ethnic minority regions and whether those effects vary for Han and ethnic minorities. Minimum wage data is combined with a proprietary datasource obtained from China's Household Ethnic Survey (CHES) project. County-level analysis reveals that a higher minimum wage reduces spatial wage inequality, especially for ethnic minorities, without affecting unemployment rates. Subsequent micro-level analysis provides some explanation for why there is no observed adverse effect on aggregate unemployment. First, quantile regression models reveal that higher minimum wages causes employers to make some adjustments to the number of hours worked by employees to help offset higher labor costs. Second, multinomial logit models show that a higher minimum wage promotes formalization of the labour market. The results are robust to alternate estimations that take into account both censoring and endogeneity. The findings help confirm that minimum wages not only reduce spatial inequality, but also induce non-wage benefits in a developing country context.


Changing Trends in China's Inequality

Changing Trends in China's Inequality
Author: Terry Sicular
Publisher: Oxford University Press, USA
Total Pages: 457
Release: 2020
Genre: Business & Economics
ISBN: 019007793X

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"This work provides a new, comprehensive, and empirically grounded study of household incomes in China that critically examines the long-term rise and recent apparent decline in inequality. It covers incomes and inequality nationwide as well as separately in the urban and rural sectors, with close attention to measurement issues and to underlying changes in the economy, institutions, and public policy. The chapters examine a range of related topics, including the inequality of wealth, the emergence of a new middle class, the income gap between the Han and the ethnic minorities, the gender wage gap, and the impacts of government policies, such as social welfare programs and the minimum wage. A distinguishing feature of the book is its use of data from the China Household Income Project (CHIP), a collaborative, international research project that has organized nationwide household surveys spanning 1988, 1995, 2002, 2007, and, most recently, 2013. The CHIP data make possible to provide a consistent picture of the evolution of China's income and inequality from the late 1980s to the beginning of the Xi Jinping era. Analyses of the 2013 CHIP data, with comparisons to findings from past rounds of the survey, reveal new trends in China's inequality"--


Unemployment, Inequality and Poverty in Urban China

Unemployment, Inequality and Poverty in Urban China
Author: Hiroshi Sato
Publisher: Routledge
Total Pages: 346
Release: 2006-09-27
Genre: Business & Economics
ISBN: 1134303076

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Based on extensive original research, this book explores many aspects of unemployment, inequality and poverty in urban China.


Minimum Wages, Spillovers and the Unconditional Wage Distribution in Urban China

Minimum Wages, Spillovers and the Unconditional Wage Distribution in Urban China
Author: Anthony Howell
Publisher:
Total Pages: 43
Release: 2017
Genre:
ISBN:

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This paper examines minimum wage effects on workers' wages in China's ethnic minority urban areas using publicly available minimum wage data combined with proprietary household data. The identification strategy relies on a recent estimator developed in Powell (2015) capable of studying the minimum wage effects on the unconditional wage distribution in an instrument variable (IV) setting. The results show that minimum wage effects lead to wage compression at both the lower and upper parts of the unconditional wage distribution, although the extent to which wages are affected varies quite substantially for Han and ethnic minority workers. At the bottom part of the distribution, minimum wages increase wages for both Han and ethnic minority workers, although the size of the effect is larger for the latter group, implying a reduction in the ethnic wage gap for lower-wage workers. Conversely, at the upper part of the distribution, higher minimum wages reduce wages for Han workers despite failing to have any statistically significant effect on ethnic minority workers. The results imply that employers react to the higher labor costs associated with minimum wages by constraining the wages for higher paid Han, but not ethnic minority, workers.


The Fundamentals of Minimum Wage Fixing

The Fundamentals of Minimum Wage Fixing
Author: François Eyraud
Publisher: International Labour Organization
Total Pages: 154
Release: 2005
Genre: Business & Economics
ISBN: 9789221170143

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This manual draws on the ILO's comprehensive database containing the principal legal provisions and minimum wage fixing mechanisms in 100 countries. The minimum wage has had a long and turbulent history, and this study sheds light on its intricacies by providing a thorough overview of the institutions and practices in different countries. It outlines the main topics for debate concerning the effects of minimum wages on major social and economic variables such as employment, wage inequality, and poverty. The book considers the various procedures countries use for implementation, including the criteria employed to fix the minimum wage, and how they are linked to specific country objectives. It then measures the efficiency of the minimum wage, and focuses on its impact on employment as a major political issue. For the benefit of non-specialists, the validity of econometric models and their results are examined.


Global Wage Report 2020-21

Global Wage Report 2020-21
Author: INTERNATIONAL LABOUR OFFICE.
Publisher:
Total Pages: 0
Release: 2020-12-02
Genre:
ISBN: 9789220319482

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This ILO flagship report examines the evolution of real wages around the world, giving a unique picture of wage trends globally and by region. The 2020-21 edition analyses the relationship of minimum wages and inequality, as well as the wage impacts of the COVID-19 crisis. The 2020-21 edition also reviews minimum wage systems across the world and identifies the conditions under which minimum wages can reduce inequality. The report presents comprehensive data on levels of minimum wages, their effectiveness, and the number and characteristics of workers paid at or below the minimum. The report highlights how adequate minimum wages, statutory or negotiated, can play a key role in a human-centred recovery from the crisis


Rising Inequality in China

Rising Inequality in China
Author: Shi Li
Publisher: Cambridge University Press
Total Pages: 531
Release: 2013-10-31
Genre: Business & Economics
ISBN: 1107002915

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This book examines the evolution of economic inequality in China from 2002 to 2007; a sequel to Inequality and Public Policy in China (2008).