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Minimum wage system and corporate tax burden stickiness

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  • Xue, Mingfu

Abstract

This paper, based on data from Chinese A-share listed companies spanning 2011–2023, conducts an empirical examination of the impact mechanisms and heterogeneous characteristics of minimum wage standard increases on corporate tax burden stickiness. The study yields three key findings: First, Chinese listed companies generally exhibit tax burden stickiness; second, minimum wage increases significantly alleviate tax burden stickiness by compelling enterprises to upgrade technology and optimize resource allocation; third, further heterogeneity analysis reveals that the tax burden stickiness-alleviating effect of minimum wage increases is more pronounced among state-owned enterprises (SOEs), which is closely related to their rigid institutional enforcement, excess employment practices, and operational constraints.

Suggested Citation

  • Xue, Mingfu, 2025. "Minimum wage system and corporate tax burden stickiness," Finance Research Letters, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:finlet:v:84:y:2025:i:c:s1544612325010773
    DOI: 10.1016/j.frl.2025.107819
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    References listed on IDEAS

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