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[Comments on specific article] Working Paper No. 38: Yang Du; Peng Jia: Minimum Wages in China: Standard and Implementation

Time: 2015/11/7 15:24:58
Abstract: Utilizing various sources of data, this paper describes the evolution of minimum wage system in China and analyzes its enforcement. In 2010, 13% of workers in our sample earn wages below local minimum wages. This result is worse than most of developed countries but better than countries with about the same level of economic development as China. Both descriptive statistics and regression analysis indicate that some focused groups of workers ought to be targeted when implementing the minimum wages, including female and less educated workers. Our analysis further indicates that the effect of compliance in minimum wages is not only determined by the effort to enforcement, but also correlated with the level of minimum wage, economic structure, ownership type, and labor market conditions, etc. Our study also implies that the current minimum wage level in China is in accordance with China’s current stage of economic development, and frequent and large increase of minimum wage should be restrained.
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