Minimum wage impacts on Han-minority Workers’ wage distribution and inequality in urban china

2020 ◽  
Vol 115 ◽  
pp. 103184
Author(s):  
Anthony Howell
Keyword(s):  
Minimum Wage ◽  
Urban China ◽  
Wage Distribution ◽  
Minority Workers

The Effects of the Minimum-Wage Policy on the Wage Distribution in Urban China

2020 ◽  
pp. 359-395
Author(s):  
Xinxin Ma ◽  
Shi Li
Keyword(s):  
Regression Model ◽  
Minimum Wage ◽  
Spillover Effect ◽  
Ordinary Least Squares ◽  
Urban China ◽  
Wage Distribution ◽  
Average Wage ◽  
Wage Level ◽  
Wage Policy ◽  
Quantile Regression Model

Using the CHIP survey data, this study analyzes the effects of the minimum wage (MW) policy on wage distribution in urban China from 1993 to 2013. Several major conclusions emerge. Ordinary least squares and quantile regression model estimates show that the MW affected both the average wage and the wages of the low-wage groups during 1993–1995, 1998–2002, and 2007–2013, with the greatest effect during the 1993–1995 period. Neumark, Schweitzer, and Wascher model estimates indicate that the change in the MW level affected changes in the wage level for low-wage groups during 1993–1995 and 1998–2002, with the greatest effect during the 1993–1995 period. A difference-in-differences model indicates that even when heterogeneity problems are addressed, the MW considerably affected the wage levels of low-wage groups during all three periods. All of the estimation results reveal the presence of a spillover effect in 1993–1995 but not in 1998–2002 or 2007–2013.

scholarly journals The impact of a minimum wage change on the distribution of wages and household income

2020 ◽  
Author(s):  
Paul Redmond ◽  
Karina Doorley ◽  
Seamus McGuinness
Keyword(s):  
Income Distribution ◽  
Minimum Wage ◽  
Wage Inequality ◽  
Household Income ◽  
Spillover Effects ◽  
Wage Distribution ◽  
Wage Increase ◽  
Minimum Wage Increase ◽  
Wage Change ◽  
The Impact

Abstract We use distribution regression analysis to study the impact of a 6% increase in the Irish minimum wage on the distribution of hourly wages and household income. Wage inequality, measured by the ratio of wages in the 90th and 10th percentiles and the 75th and 25th percentiles, decreased by approximately 8 and 4%, respectively. The results point towards wage spillover effects up to the 30th percentile of the wage distribution. We show that minimum wage workers are spread throughout the household income distribution and are often located in high-income households. Therefore, while we observe strong effects on the wage distribution, the impact of a minimum wage increase on the household income distribution is quite limited.

scholarly journals The Minimum Wage Affects Them All: Evidence on Employment Spillovers in the Roofing Sector

2013 ◽  
Vol 14 (3) ◽  
pp. 282-315 ◽  
Author(s):  
Bodo Aretz ◽  
Terry Gregory ◽  
Melanie Arntz
Keyword(s):  
Minimum Wage ◽  
Scale Effects ◽  
Minimum Wages ◽  
Wage Distribution ◽  
Employment Effects ◽  
Eastern Germany

Abstract This study contributes to the sparse literature on employment spillovers of minimum wages. We exploit the minimum wage introduction and subsequent increases in the German roofing sector that gave rise to an internationally unprecedented hard bite of a minimum wage. We look at the chances of remaining employed in the roofing sector for workers with and without a binding minimum wage and use the plumbing sector that is not subject to a minimum wage as a suitable benchmark sector. By estimating the counterfactual wage that plumbers would receive in the roofing sector given their characteristics, we are able to identify employment effects along the entire wage distribution. The results indicate that the chances for roofers to remain employed in the sector in eastern Germany deteriorated along the entire wage distribution. Such employment spillovers to workers without a binding minimum wage may result from scale effects and/or capital-labour substitution.

scholarly journals The Effect of Minimum Wages on Low-Wage Jobs*

2019 ◽  
Vol 134 (3) ◽  
pp. 1405-1454 ◽  
Author(s):  
Doruk Cengiz ◽  
Arindrajit Dube ◽  
Attila Lindner ◽  
Ben Zipperer
Keyword(s):  
Minimum Wage ◽  
State Level ◽  
The United States ◽  
Minimum Wages ◽  
Wage Distribution ◽  
Employment Effect ◽  
Hourly Wage ◽  
Difference In Differences ◽  
Bottom Part ◽  
Demographic Groups

Abstract We estimate the effect of minimum wages on low-wage jobs using 138 prominent state-level minimum wage changes between 1979 and 2016 in the United States using a difference-in-differences approach. We first estimate the effect of the minimum wage increase on employment changes by wage bins throughout the hourly wage distribution. We then focus on the bottom part of the wage distribution and compare the number of excess jobs paying at or slightly above the new minimum wage to the missing jobs paying below it to infer the employment effect. We find that the overall number of low-wage jobs remained essentially unchanged over the five years following the increase. At the same time, the direct effect of the minimum wage on average earnings was amplified by modest wage spillovers at the bottom of the wage distribution. Our estimates by detailed demographic groups show that the lack of job loss is not explained by labor-labor substitution at the bottom of the wage distribution. We also find no evidence of disemployment when we consider higher levels of minimum wages. However, we do find some evidence of reduced employment in tradeable sectors. We also show how decomposing the overall employment effect by wage bins allows a transparent way of assessing the plausibility of estimates.

scholarly journals Assessing Minimum Wage Policy Implications upon Income Inequalities. The Case of Romania

2019 ◽  
Vol 11 (9) ◽  
pp. 2542
Author(s):  
Eva Militaru ◽  
Madalina Ecaterina Popescu ◽  
Amalia Cristescu ◽  
Maria Denisa Vasilescu
Keyword(s):  
Income Distribution ◽  
Minimum Wage ◽  
Sustainable Growth ◽  
Policy Implications ◽  
Wage Distribution ◽  
Distribution Analysis ◽  
Wage Policy ◽  
Income Inequalities ◽  
Wage Earners ◽  
The Impact

Starting from the consideration that excessive income inequalities could hamper sustainable growth, our paper aims to evaluate the impact of the minimum wage policy upon wage and income distributions. Using the European Union Survey on Income and Living Conditions (EU-SILC) database with national representative sample of households, an income distribution analysis was conducted for the case of Romania based on two microsimulation approaches. The first one assumed building a counterfactual income distribution under the hypothesis of no change in minimum wage, while the second one implied a decomposition of the Gini coefficient of income inequalities based on main income determinants, including the minimum wage level and the share of minimum wage earners in the total number of employees. Both approaches pointed to similar findings, indicating a positive effect of the minimum wage on wage inequalities reduction for both genders, although higher for women, as they are more present among lower paid employees. The minimum wage policy can reshape the wage distribution, by enlarging the share of minimum income earners and narrowing the middle. Moreover, the household disposable income becomes less unequal when minimum wage increases, meaning that the income gain spreads over the entire household as most minimum wage earners come from poor households with numerous children.

scholarly journals The minimum wage as a wage equality policy: Evidence from North Macedonia

2019 ◽  
Vol 64 (223) ◽  
pp. 61-81
Author(s):  
Marjan Petreski ◽  
Nikica Mojsoska-Blazevski ◽  
Mariko Ouchi
Keyword(s):  
Minimum Wage ◽  
Labour Force ◽  
Spillover Effects ◽  
Wage Distribution ◽  
Wage Increase ◽  
Current Policy ◽  
Wage Level ◽  
Minimum Wage Increase ◽  
Wage Increases ◽  
Wage Compression

The paper aims to investigate if the minimum wage increase of September 2017 resulted in better wage equality in North Macedonia. The increase of 19% was sizable and included levelling up in the three sectors with a lower minimum wage: textiles, apparel, and leather. We extend the ?cell? approach of Card (1992a) and rely on data from the Labour Force Survey 2017 and 2018. The results suggest that the 2017 increase in the minimum wage had a positive, significant, and robust effect on wages. However, the wage increases were almost entirely positioned on the left side of the wage distribution and implied wage compression up to or around the minimum wage. The bunching around the new minimum wage level ?equalised? workers: those who previously earned the new minimum wage level equalised with the less productive workers who approximated their wage only by the power of the law. Hence, wage equality improved. The results confirm that the minimum wage can be an important wage equality policy, with considerably limited upward spillover effects in the current policy and institutional setup.

scholarly journals The Minimum Wage Campaign in Brazil and the Fight against Inequality

2015 ◽  
Vol 6 (3) ◽  
Author(s):  
Frederico Luiz Barbosa De Melo
Keyword(s):  
Social Security ◽  
Minimum Wage ◽  
Wage Distribution ◽  
Purchasing Power ◽  
Full Time ◽  
High Concentration ◽  
Effective Role ◽  
The Law ◽  
The Government

<p>This article summarises the Brazilian experience on the minimum wage campaign and the results and challenges brought by the increase in real value of the minimum wage. In 2005 and 2006, the minimum wage in Brazil underwent significant increases, and in 2006 an agreement about a long-term process to elevate its purchasing power was established between the government and the labour union centrals; in 2011 the agreement became law, defining the per cent of adjustment and real increase until 1 January 2015, and this year the law will have to be reviewed. In the last decade, Brazilian income inequality diminished, and the gains of the minimum wage seem to have an effective role in this process. After describing briefly the trajectory and legislation of the minimum wage in Brazil, the article shows how many individuals receive the equivalent of one minimum wage, either in the labour market or as a social security benefit. Some data about the wage distribution and inequality are also presented and discussed. The process of increase of the purchasing power of the minimum wage is now at risk insofar as the economy slows down since, according to the law, its gain is determined by GDP growth. Other difficulties are set by the impacts of the increase of the minimum wage over social security expenditures. The high concentration of salaries between 1 and 1.5 minimum wage and the current value of 43.4% to the proportion between the minimum wage and the median wage of full-time workers signals a stronger resistance against the long-term improvement of the minimum wage in Brazil.</p>

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