Huang, Yi; Loungani, Prakash; Wang, Gewei - International Economics Section, The Graduate Institute … - 2014
This paper studies how minimum wage policies affect firm employment in China using a unique county level minimum wage … or large profit margin increase employment, while those with low wages or small profit margin downsize. The increase in … enforcement of China’s minimum wage in 2004 has since amplified this heterogeneity, which implies that labor regulation may reduce …