Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2108475
Minimum wages, firms’ capital intensity and the evolution of economic efficiency in China
Xin Liu
Dewang Wu
Sažetak
Implementing the minimum wage (M.W.) regime leads to higher barriers
to entry and the elimination of inefficient firms. This may be a
key factor that affects the efficiency of Chinese firms’ evolution and
contributes to macroeconomic growth. Based on Chinese industrial
enterprise and district M.W. data, we analyse the impact of China’s
M.W. regime on the evolution and behaviour of micro firms and the
resulting macroeconomic effects from two aspects: a theoretical
model and panel data regression. The results show that the M.W.
regime increases firms’ factor productivity significantly but leads to
the immobility of incumbents, as it results in lower entry and exit
probabilities. Total factor decomposition suggests that a M.W.
regime improves regional economic efficiency via the growth effect.
In addition, as capital intensity increases, a M.W. regime further
boosts the growth in firms’ productivity, but its positive effect on
macroeconomic efficiency diminishes. The results help understand
the underlying drivers of China’s economic growth and offer important
reference significance for rationalising labour policies.
Ključne riječi
minimum wage (M.W.); firms’ dynamic evolution; internal efficiency improvement; resource reallocation; efficiency of economic evolution
Hrčak ID:
306645
URI
Datum izdavanja:
30.4.2023.
Posjeta: 164 *