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Impact of minimum wage on gender wage gaps in urban China

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  • Shi Li
  • Xinxin Ma

Abstract

This paper provides evidence on whether the minimum wage (MW) has affected gender wage gaps in urban China. Several major conclusions emerge. First, from 1995 to 2007, the proportion of workers whose wages were below the regional MW level was greater for female workers than for male workers. Second, the results obtained by using the difference-in-differences estimation method show that from a long-term perspective, the MW will help to reduce gender wage gaps and that the effect is more obvious for the low-wage group. However, in the short term, the amelioration effect is not obvious. JEL classification: J31, J48, J71 Copyright Li and Ma. 2015

Suggested Citation

  • Shi Li & Xinxin Ma, 2015. "Impact of minimum wage on gender wage gaps in urban China," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-22, December.
    • Handle: RePEc:spr:izaldv:v:4:y:2015:i:1:p:1-22:10.1186/s40175-015-0044-4
    DOI: 10.1186/s40175-015-0044-4
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    Cited by:

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    2. Xinxin Ma, 2019. "The Impact of Higher Education Expansion Policy on the Wage of College Graduates in China," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(5), pages 1-68, May.
    3. Majchrowska, Aleksandra & Strawiński, Paweł, 2018. "Impact of minimum wage increase on gender wage gap: Case of Poland," Economic Modelling, Elsevier, vol. 70(C), pages 174-185.
    4. Carlos Oliveira, 2022. "How is the Minimum Wage Shaping the Wage Disitribution: Bite, Spillovers, and Wage Inequality," GEE Papers 0160, Gabinete de Estratégia e Estudos, Ministério da Economia, revised May 2022.
    5. Shi Li & Terry Sicular & Finn Tarp, 2018. "Inequality in China: Development, transition, and policy," WIDER Working Paper Series wp-2018-174, World Institute for Development Economic Research (UNU-WIDER).
    6. Wang, Haining & Cheng, Zhiming, 2021. "Mama loves you: The gender wage gap and expenditure on children's education in China," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 1015-1034.
    7. Shi Li & Terry Sicular & Finn Tarp, 2018. "Inequality in China: Development, transition, and policy," WIDER Working Paper Series 174, World Institute for Development Economic Research (UNU-WIDER).
    8. Ren, Yanjun & Peng, Yanling & Campos, Bente Castro & Li, Houjian, 2021. "Higher minimum wage, better labour market returns for rural migrants? Evidence from China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 34(1), pages 1814-1835.
    9. Yang, Chih-Hai, 2023. "Strengthening worker benefits or destroying jobs: Effect of the 2008 Labor Contract Law in China," International Review of Law and Economics, Elsevier, vol. 73(C).
    10. Terry Sicular & Shi Li & Ximing Yue & Hiroshi Sato, 2017. "Changing Trends in China’s Inequality: Key Issues and Main Findings," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 201712, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    11. Jiwei Chen, 2021. "Do minimum wage increases benefit worker health? Evidence from China," Review of Economics of the Household, Springer, vol. 19(2), pages 473-499, June.
    12. Xing, Chunbing & Yuan, Xiaoyan & Zhang, Junfu, 2022. "City size, family migration, and gender wage gap: Evidence from rural–urban migrants in China," Regional Science and Urban Economics, Elsevier, vol. 97(C).
    13. Xinxin Ma & Chengcheng Zhang, 2017. "Higher Education Expansion and Return to Education in China: Evidence from CGSS2005 and CGSS2013," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 8(3), pages 85-104, July.
    14. MA, Xinxin & CHENG, Jie, 2023. "The Impact of Trade Unions on the Gender Wage Gap : Evidence from China," Discussion Paper Series 752, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    Keywords

    The minimum wage; Gender wage gap; Urban China;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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