Can an increase in the minimum wage standard force enterprises to innovate? Evidence from China

Li, Zheng; Liu, Fengshuo; Mi, Shuai

doi:10.1002/mde.3630

Cited by 4 publications

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“…In other words, higher labour costs pressure firms to improve managerial efficiency and improve the quality of labour supply. Thus, minimum wages can benefit developing countries in the long run by forcing low-productivity and low-technology sectors which rely on low-cost labour to invest in productivity-improving technology (Levine 1992;Li et al 2022).…”

Section: Introductionmentioning

confidence: 99%

Minimum Wages in Developing Countries

Fang

Ha²

2022

SSRN Journal

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Section: Introductionmentioning

confidence: 99%

Minimum Wages in Developing Countries

Fang

Ha²

2022

SSRN Journal

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“…The propensity to consume of workers due to rising wages will be higher than that of profittakers. The expansion of local market scale has improved the effective demand of enterprises and reduced the innovation risk of enterprises, so they will more actively carry out innovation activities (Li, 2017).…”

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The Promotion Effect of Minimum Wage on Enterprise Digital Transformation

Bian,

2023

Proceedings of the International Scientific Conference Hradec Economic Days 2023

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In the digital economy era, the factors influencing enterprise digital transformation have become the focus in the study. Based on the minimum wage perspective, this paper uses the data of China listed companies and minimum wage to study the impact of minimum wage on enterprise digital transformation. The results show that the rise of minimum wage has accelerated the process of enterprise digital transformation, and this conclusion still hold true after robustness test and endogenous treatment. Mechanism analysis shows that the rise of minimum wage promotes enterprise digital transformation through innovation incentive effect. The heterogeneity analysis shows that for non-state enterprises, high-tech enterprises and China eastern enterprises, the minimum wage plays a more significant role in promoting enterprise digital transformation. The conclusion provides a useful reference for enterprises to effectively promote digital transformation and the government to reasonably set the minimum wage standard in the digital economy era.

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Minimum Wages in Developing Countries

Fang

Ha²

2023

Handbook of Labor, Human Resources and Population Economics

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Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

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Can an increase in the minimum wage standard force enterprises to innovate? Evidence from China

Cited by 4 publications

References 57 publications

Minimum Wages in Developing Countries

Minimum Wages in Developing Countries

The Promotion Effect of Minimum Wage on Enterprise Digital Transformation

Minimum Wages in Developing Countries

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