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The “comparison effect” of minimum wage adjustment in China
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TitleThe “comparison effect” of minimum wage adjustment in China  
AuthorYang Can,Ye Linxiang and Zhan Peng  
OrganizationBeijing Normal University;Nanjing University of Finance and Economics;; 
Key WordsMinimum Wage; Logit Model; Comparison Effect  
Abstract In this paper, we use the minimum wages and relevent data of 31 provinces about 2004~2013 to conduct empirical analysis. On the one hand,we find that there is “comparison effect” in minimum wage adjustments in China. When the province decides to adjust the minimum wage, it’s influenced by other regions, especially influenced by the developed province, does not fully take into account the local unemployment rate, per capita consumption , per capita GDP and other factors. On the other hand, due to the “rule of minimum wage” requires once adjustment at least two years, the country has to adjust the minimum wage if it didn’t adjust before. These will lead to the higher level of the minimum wage, which may harm employment, contrary to the original intention of the minimum wage system. Only combine the actual local situation, strengthen the implementation and supervision of labor market regulations, can the minimum wage policy to achieve the desired results. 
Serial NumberWP1029 
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