{
  "title": "Minimum Wages and Firm Employment: Evidence from China",
  "publication": "IMF Working Papers, October 16, 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.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Study period: 2000-2007.\n- Dataset: minimum wage regulations across more than 2,800 counties matched with firm-level data.\n- Main objective: estimate how minimum wage policies and the 2004 tightening of policy enforcement in China affect firm employment."
    },
    {
      "heading": "Methods",
      "content": "- Econometric approach: dynamic panel (difference GMM) estimator.\n- Identification enhancement: “neighbor-pairs-approach” to control for unobservable heterogeneity common to “border counties” subject to different minimum wage changes.\n- Treatment examined: minimum wage changes and the 2004 policy enforcement tightening."
    },
    {
      "heading": "Key findings",
      "content": "- Estimated employment elasticity with respect to minimum wage increases: -0.1.\n- Heterogeneous effects by firm wage level:\n  - Minimum wage increases have a greater negative impact on employment in low-wage firms than in high-wage firms.\n- Results robustness:\n  - Findings are robust across different treatment groups.\n  - Robust to sample attrition correction.\n  - Robust to placebo tests."
    },
    {
      "heading": "Interpretation and implications",
      "content": "- Evidence indicates that minimum wage increases during 2000-2007 in China reduced firm employment on average, with disproportionate effects on low-wage firms.\n- The 2004 tightening of policy enforcement is explicitly examined as part of the policy treatment affecting employment outcomes.\n\nBy Yifei Huang, Prakash Loungani, Gewei Wang; October 16, 2014. Source: IMF Working Papers — \"Minimum Wages and Firm Employment: Evidence from China\".\n\n---\n\n Content in this bundle\n\n- wp14184\n  - wp14184 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp14184 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/minimum-wages-and-firm-employment-evidence-from-china-42395"
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    "Authors: Yifei Huang, Prakash Loungani, Gewei Wang",
    "Published: October 16, 2014",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781498332309.001",
    "Study period: 2000-2007.",
    "Dataset: minimum wage regulations across more than 2,800 counties matched with firm-level data.",
    "Main objective: estimate how minimum wage policies and the 2004 tightening of policy enforcement in China affect firm employment.",
    "Econometric approach: dynamic panel (difference GMM) estimator.",
    "Identification enhancement: “neighbor-pairs-approach” to control for unobservable heterogeneity common to “border counties” subject to different minimum wage changes.",
    "Treatment examined: minimum wage changes and the 2004 policy enforcement tightening.",
    "Estimated employment elasticity with respect to minimum wage increases: -0.1.",
    "Heterogeneous effects by firm wage level:",
    "Results robustness:",
    "Evidence indicates that minimum wage increases during 2000-2007 in China reduced firm employment on average, with disproportionate effects on low-wage firms.",
    "The 2004 tightening of policy enforcement is explicitly examined as part of the policy treatment affecting employment outcomes.",
    "**_wp14184**"
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