The Impact of Minimum Wage on Workers’ Income and Income Distribution – A Study Based on CHNS Data
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| Title | The Impact of Minimum Wage on Workers’ Income and Income Distribution – A Study Based on CHNS Data
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| Author | Wang Xianghong and Wang Gensong |
| Organization | Renmin University of China；The Bank of China Limited by Share Ltd |
| Email | hwang06@ruc.edu.cn; shwang06g@gmail.com；wanggensong001@163.com |
| Key Words | Minimum wage;Difference-in-difference;Percentage change;Income distribution |
| Abstract | This paper examines the impact of minimum wage on workers’ income level and income distribution using household survey data. We first use difference-in-difference method to study the impact of minimum wage upgrading on income level. We then combine the difference-in-difference method with a method involving percentage change to study the impact of minimum wage change rate on income distribution. The results indicate that minimum wage upgrading generally does not have significant impact on average income level of all workers. However, minimum wage does have negative impact on those in collective enterprises and negative impact on those whose income were within 150%-205% of previous minimum wage level. This implies that minimum has some impact on income distribution. The results are robust to alternative specifications. |
| Serial Number | WP575 |
| Time | 2014-01-14 |
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