Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/162462 
Year of Publication: 
2017
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper No. HEIDWP01-2017
Publisher: 
Graduate Institute of International and Development Studies, Geneva
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

Files in This Item:
File
Size
593.23 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.