MINIMUM WAGES, IMPORT STATUS, AND FIRMS' INNOVATION: THEORY AND EVIDENCE FROM CHINA.

This study explores the heterogeneous effects of minimum wage on innovation of different types of firms. We develop an open‐economy R&D‐based growth model and obtain the following result: raising the minimum wage reduces innovation of firms that use domestic inputs but increases innovation of firms...

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Publicado en:Economic Inquiry Vol. 59; no. 1; pp. 441 - 459
Autores principales: Chu, Angus C., Fan, Haichao, Furukawa, Yuichi, Kou, Zonglai, Liu, Xueyue
Formato: Artículo
Publicado: Wiley-Blackwell Jan2021
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Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jan2021
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        atl: MINIMUM WAGES, IMPORT STATUS, AND FIRMS' INNOVATION: THEORY AND EVIDENCE FROM CHINA.
      aug:
        au:
          Chu, Angus C.
          Fan, Haichao
          Furukawa, Yuichi
          Kou, Zonglai
          Liu, Xueyue
        affil:
          Management School, University of Liverpool, Liverpool L69 3BX,, UK
          Institute of World Economy, School of Economics, Fudan University, Shanghai 200433,, China
          School of Economics, Aichi University, Nagoya 4418522,, Japan
          China Center for Economic Studies, School of Economics, Fudan University, Shanghai 200433,, China
          School of Economics, Fudan University, Shanghai 200433,, China
      su:
        China
        Minimum wage
        Technological innovations
        Robust statistics
        Patents
      sug:
        subj:
          Minimum wage
          Technological innovations
          China
          Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors
          Offices of Lawyers
          All Other Legal Services
          Robust statistics
          Patents
      ab: This study explores the heterogeneous effects of minimum wage on innovation of different types of firms. We develop an open‐economy R&D‐based growth model and obtain the following result: raising the minimum wage reduces innovation of firms that use domestic inputs but increases innovation of firms that import foreign inputs. We test this result using city‐level data on minimum wages and firm‐level patent data in China. In accordance with our theory, we find that raising the minimum wage is associated with more innovation by importing firms and less by non‐importing firms. This result survives a battery of robustness checks.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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