An Analysis of the Employment Effect of China’s Minimum Wage System ——Evidence from Provincial Industry Data
PU Yanping1,2, ZHANG Yuke1
1.School of Public Administration,Chongqing University,Chongqing 400044,China; 2.Research Center of Public Economic and Public Policy,Chongqing University,Chongqing 400044,China
Abstract In this paper, the employment effect of the minimum wage system was tested for the first time from the perspective of detailed industries by using the data of the inter-provincial panel data of 23 industrial industries in China from 2001 to 2016 and adopting the systematic GMM method. It is found that the employment effect of the minimum wage system is significantly different in different industries. Minimum wage has a significant negative impact on employment to the capital intensive, smaller and low proportion of state-owned capital industry, has no obvious effect on employment to the labor intensive and high proportion of state-owned capital industry, has a significant role for larger industry employment. Furthermore, the industry group regression results are verified by subdivision. The robustness test still supports this conclusion. The establishment of the minimum wage standard of governments at all levels should take into full account of the characteristics of the industry, so that the minimum wage standard can truly play the biggest role in safeguarding the rights and interests of workers.
PU Yanping,ZHANG Yuke. An Analysis of the Employment Effect of China’s Minimum Wage System ——Evidence from Provincial Industry Data. Economic Survey, 2020, 37(1): 086.
2020, Vol. 37 
