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Minimum wage, labor productivity, and employment promotion

Author

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  • Hou, Bing
  • Pang, Weiming
  • Li, Wenjie

Abstract

This paper selects the panel data of 31 provinces, autonomous regions, and cities from 2012 to 2022 as a sample and adopts the method of empirical analysis to deeply explore the intrinsic connection between minimum wage standard, labor productivity, and employment promotion. An appropriate increase in the minimum wage standard and labor productivity can effectively promote employment growth. However, this effect shows variability across regions. A region's income level can strengthen the minimum wage standard's positive employment promotion effect.

Suggested Citation

  • Hou, Bing & Pang, Weiming & Li, Wenjie, 2025. "Minimum wage, labor productivity, and employment promotion," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325010220
    DOI: 10.1016/j.frl.2025.107764
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    References listed on IDEAS

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