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Minimum Wage, Spatial Spillover and Employment: An Analysis of Spatial Durbin Model Based on Provincial Panel Data

【Authors】
ZHENG Shi, QIN Ming, FAN Linfeng, WANG Zhigang
【WorkUnit】
Renmin University of China
【Abstract】

The minimum wage-employment debate is far away into a consistent view, especially most of researches failing to account for spatial spillover effects. Based on panel data from 30 provinces for the years 1996-2012, this paper erects a Spatial Durbin Mode to examine spatial spillovers among the employment effects of minimum wages. The results show that there is a directly inverted-U-shaped relationship between minimum wages and rural migration employment, while the impact of indirectly effects opposite. What's more, the significate evidences provide strong support that spatial spillover is the key factor affecting minimum wage-employment, especially in factor market area more mature. Therefore, this paper put forward the suggestion that to protect the salary right of non-agricultural employment, set differentiate minimum wage standard and promote the coordinated development among regional area.

【KeyWords】
Minimum Wages, Employment, Spatial Spillover, Spatial Durbin Model


JEL:J23,J38