Original scientific paper
https://doi.org/10.1080/1331677X.2020.1762104
The influence of minimum wage regulation on labor income share and overwork: evidence from China
Qilin Zhan
Xiaohui Zeng
Zhan-ao Wang
Xiuzhen Mu
Abstract
Minimum Wage Regulation (MWR) can raise wage rate, but its
relation with labor income share is in controversy. We explore the
influence of raising wage rate on labor income share and overwork
in China. Panel data regressions are taken mainly based on
China’s Industrial Enterprise Database and the International Labor
Organization Database. Our findings show that raising wage rate
can increase labor income share without leading to overwork.
Factors that may significantly increase overwork are a higher proportion
of male workers, a larger income gap and a lower percapita
income. We point out that the neoclassical explanation for
labor income share is not persuasive. We support policies of raising
wage rate and believe MWR is an effective measure to
increase labor income share.
Keywords
MWR; raising wage rate; labor income share; overwork
Hrčak ID:
254502
URI
Publication date:
9.2.2021.
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