Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/162462
Authors: 
Dautovic, Ernest
Hau, Harald
Huang, Yi
Year of Publication: 
2017
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper 01-2017
Abstract: 
This paper evaluates the Chinese minimum wage policy for the period 2002-2009 in terms of its impact on low income household consumption. Using a representative household panel, we find support for the permanent income hypothesis, whereby unanticipated and persistent income increases due to minimum wage policy change are fully spent. The impact is driven by households with at least one child. We infer significant positive welfare effects for low income households based on expenditure increases concentrated in health care and education, whereas a negative employment effect of higher minimum wage cannot be confirmed.
Subjects: 
minimum wages
labor income
household consumption
permanent income hypothesis
JEL: 
E24
J38
C26
Document Type: 
Working Paper

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