Minimum Wage Competition between Local Governments in China.

The theory of fiscal and regulatory competition between jurisdictions is more advanced than its empirical testing. This is particularly true of labour regulation in general, and minimum wage regulation in particular, and especially so for developing countries. This paper utilises the spatial lag met...

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Publicado en:Journal of Development Studies Vol. 55; no. 12; pp. 2479 - 2495
Autores principales: Li, Yanan, Kanbur, Ravi, Lin, Carl
Formato: Artículo
Publicado: Taylor & Francis Ltd Dec2019
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Dec2019
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      pub: Taylor & Francis Ltd
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        10.1080/00220388.2018.1536263
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        atl: Minimum Wage Competition between Local Governments in China.
      aug:
        au:
          Li, Yanan
          Kanbur, Ravi
          Lin, Carl
        affil:
          Department of Economics, Business School, Beijing Normal University, Beijing, China
          Dyson School of Applied Economics and Management, Cornell University, Ithaca, NY, USA
          Department of Economics, Bucknell University, Lewisburg, PA, USA
          China Institute for Income Distribution, Beijing Normal University, Beijing, China
      su:
        China
        Minimum wage
        Local government
        Government websites
        Panel analysis
        Wage decreases
      sug:
        subj:
          Minimum wage
          Local government
          China
          Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors
          Internet Publishing and Broadcasting and Web Search Portals
          Government websites
          Panel analysis
          Wage decreases
      ab: The theory of fiscal and regulatory competition between jurisdictions is more advanced than its empirical testing. This is particularly true of labour regulation in general, and minimum wage regulation in particular, and especially so for developing countries. This paper utilises the spatial lag methodology to study city-level strategic interactions in setting and enforcing minimum wage standards during 2004–2012 in China. We manually collect a panel data set of city-level minimum wage standards from China's government websites. This analysis finds strong evidence of spatial interdependence in minimum wage standards and enforcement among main cities in China. If other cities decrease minimum wage standards by 1 RMB, the host city will decrease its standard by about 0.7–3.2 RMB. If the violation rate in other cities increases by 1 per cent, the host city will respond by an increase of roughly 0.4–1.0 percentage points. The results are robust to using three estimation methods, Maximum Likelihood, IV/GMM, and a dynamic panel data model. Our findings of strategic interactions suggest the need for policy coordination in labour regulation in China.
      pubtype: Academic Journal
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      src: R
    language: English
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