Research on the Effect of Minimum Wage on the Bargaining Power of Chinese Manufacturing

Kailiang Xue; Changqing Hu; Jianbing Luo

doi:10.54097/4rej2054

Authors

Kailiang Xue
Changqing Hu
Jianbing Luo

DOI:

https://doi.org/10.54097/4rej2054

Keywords:

Minimum wage; price markup; bargaining power.

Abstract

Based on the data of China's industrial enterprise database from 2003 to 2013 and the national minimum wage data at county (city) level, this paper investigates the impact of minimum wage policy on China's manufacturing bargaining power. The results show that (1) the increase of minimum wage will reduce the price markup of Chinese manufacturers and weaken the bargaining power of Chinese manufacturers. (2) Compared with the minimum wage adjustment in the lag period, the cost impact of the minimum wage in the current period is more intense in weakening the bargaining power of the manufacturing industry.

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