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Research on Household Income Distribution Effect of Minimum Wage Policy in Urban ChinaChinese Full Text

Duan Zhimin;Hao Feng;

Abstract: Household plays an important role in welfare analysis, but how household income is affected by the minimum wage policy has received little attention. This paper uses Chinese General Social Survey data conducted in 2005-2015 and multi-period difference-in-difference and recentered influence function regression methods, empirically examines the effect of minimum wage policy on urban household income and the distribution. It is found that: ① Increasing the minimum wage has significantly improved the income of households with 1~2 times of the poverty standard, but has no effect on the income of households below the poverty standard or above more than 2 times of the poverty standard. ② Minimum wage increase can effectively compress the family income distribution and reduce the inequality, especially in the lower part of family income distribution. ③ The final impact of minimum wage policy on household income depends on the comparison of wage spillover effect and employment reducing effect, and the impacts have significant heterogeneity on the income and employment of members in the households at different income levels. When formulating the minimum wage policy, the government should introduce corresponding supporting measures for low-income female labor to ensure that all low-income households can benefit from the improvement of minimum wage.
  • DOI:

    10.19343/j.cnki.11-1302/c.2019.07.006

  • Series:

    (H) Education & Social Sciences; (J) Economics & Management

  • Subject:

    Science of Talent and Labor Science; Macro-economic Management and Sustainable Development; Economic Reform

  • Classification Code:

    F249.24;F124.7

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