Does the Minimum Wage Standard Weaken Income Polarization?
Research Article
Open Access
CC BY

Does the Minimum Wage Standard Weaken Income Polarization?

Weijia Jin 1*
1 Wuhan University
*Corresponding author: 2022301052272@whu.edu.cn
Published on 24 July 2025
Journal Cover
AEMPS Vol.205
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-293-5
ISBN (Online): 978-1-80590-294-2
Download Cover

Abstract

Based on panel data from the China Household Tracking Survey spanning 2010 to 2022, this study investigates the impact and mechanism of minimum wage standards on income polarization at the county level. The findings indicate that increases in the minimum wage significantly exacerbate income polarization. This effect is realized through industrial structure upgrading and moderated by productivity and labor supply, with a more pronounced impact in low-income regions. Accordingly, policy recommendations are proposed to optimize income distribution, provide targeted assistance to farmers, and promote coordinated regional development.

Keywords:

Minimum Wage Standard, Income Polarization, Industrial Structure Upgrading

View PDF
Jin,W. (2025). Does the Minimum Wage Standard Weaken Income Polarization?. Advances in Economics, Management and Political Sciences,205,42-51.

References

[1]. He, R. L. (2021). China’s experience in polarization governance. Beijing, China: Renmin University Press.

[2]. Feng, Y. W. (2020). The emergence, measurement, and impact of wage polarization. Contemporary Economics, (12), 105–107.

[3]. Stigler, G. J. (1946). The economics of minimum wage legislation. The American Economic Review, 36, 358–365.

[4]. Heckman, J., & Sedlacek, G. (1981). The impact of the minimum wage on the employment and earnings of workers in South Carolina. Report of the Minimum Wage Study Commission, 5, 225–272.

[5]. Acharya, V. V., Baghai, R. P., & Subramanian, K. V. (2013). Labor laws and innovation. The Journal of Law & Economics, 56, 997–1037.

[6]. Zhang, D. D., Li, L. X., & Tong, C. (2018). Minimum wage, migrant unemployment, and crime. Economics (Quarterly), 17(03), 1035–1054.

[7]. Zhang, Q., Feng, S. L., & Cao, H. (2022). Minimum wage adjustment and employment of people with disabilities in China: Empirical evidence and mechanisms based on county-level matched pairs and individual tracking data. Economics (Quarterly), 22(03), 1061–1078.

[8]. Liu, S. L., & Ma, S. (2025). Minimum wage and digital entrepreneurship: A demand creation perspective. Economic Dynamics, (03), 128–145.

[9]. Esteban, J.-M., & Ray, D. (1994). On the measurement of polarization. Econometrica, 62(4), 819–851.

[10]. Wolfson, M. C. (1994). When inequalities diverge. The American Economic Review, 84, 353–358.

[11]. Yin, Y. H., & Sun, X. D. (2023). How do artificial intelligence and capital taxes affect income distribution patterns: Polarization or optimization? Journal of Shenzhen University (Humanities and Social Sciences Edition), 40(01), 83–91.

[12]. Zhang, Y., & Li, H. J. (2022). The impact of enterprise intelligent transformation on internal labor structure adjustment. China Human Resources Development, 39(01), 98–118.

[13]. Zheng, X. W., Wang, D. D., & Zhang, Y. (2020). Minimum wage standards, government innovation intervention, and urban industrial structure upgrading: Empirical evidence from 279 prefecture-level cities in China. East China Economic Management, 34(12), 39–47.

[14]. Wu, Y. M. (2017). The industrial structure effect of China’s minimum wage system [Master’s thesis, Guangdong University of Foreign Studies].

[15]. Autor, D. H., Katz, L. F., & Kearney, M. S. (2006). The polarization of the U.S. labor market. The American Economic Review, 96(2), 189–194.

[16]. Zhou, G. S., Ding, X. Y., & Zhang, W. H. (2023). Minimum wage standards, resident income inequality, and common prosperity: Analysis based on CFPS panel data. Economic Issues Exploration, (10), 31–47.

[17]. Cui, X. M., Yu, M. J., & Yuan, D. (2018). Minimum wage and domestic value-added in exports: Evidence from Chinese firms. World Economy, 41(12), 49–72.

[18]. Lu, X. B. (2016). The impact of China’s minimum wage on labor market supply [Master’s thesis, Wuhan University].

[19]. Sun, W. Z., Niu, D. X., & Wan, G. H. (2022). Transportation infrastructure construction and industrial structure upgrading: An empirical analysis based on high-speed rail construction. Management World, 38(03), 19–34+58+35–41.

References

[1]. He, R. L. (2021). China’s experience in polarization governance. Beijing, China: Renmin University Press.

[2]. Feng, Y. W. (2020). The emergence, measurement, and impact of wage polarization. Contemporary Economics, (12), 105–107.

[3]. Stigler, G. J. (1946). The economics of minimum wage legislation. The American Economic Review, 36, 358–365.

[4]. Heckman, J., & Sedlacek, G. (1981). The impact of the minimum wage on the employment and earnings of workers in South Carolina. Report of the Minimum Wage Study Commission, 5, 225–272.

[5]. Acharya, V. V., Baghai, R. P., & Subramanian, K. V. (2013). Labor laws and innovation. The Journal of Law & Economics, 56, 997–1037.

[6]. Zhang, D. D., Li, L. X., & Tong, C. (2018). Minimum wage, migrant unemployment, and crime. Economics (Quarterly), 17(03), 1035–1054.

[7]. Zhang, Q., Feng, S. L., & Cao, H. (2022). Minimum wage adjustment and employment of people with disabilities in China: Empirical evidence and mechanisms based on county-level matched pairs and individual tracking data. Economics (Quarterly), 22(03), 1061–1078.

[8]. Liu, S. L., & Ma, S. (2025). Minimum wage and digital entrepreneurship: A demand creation perspective. Economic Dynamics, (03), 128–145.

[9]. Esteban, J.-M., & Ray, D. (1994). On the measurement of polarization. Econometrica, 62(4), 819–851.

[10]. Wolfson, M. C. (1994). When inequalities diverge. The American Economic Review, 84, 353–358.

[11]. Yin, Y. H., & Sun, X. D. (2023). How do artificial intelligence and capital taxes affect income distribution patterns: Polarization or optimization? Journal of Shenzhen University (Humanities and Social Sciences Edition), 40(01), 83–91.

[12]. Zhang, Y., & Li, H. J. (2022). The impact of enterprise intelligent transformation on internal labor structure adjustment. China Human Resources Development, 39(01), 98–118.

[13]. Zheng, X. W., Wang, D. D., & Zhang, Y. (2020). Minimum wage standards, government innovation intervention, and urban industrial structure upgrading: Empirical evidence from 279 prefecture-level cities in China. East China Economic Management, 34(12), 39–47.

[14]. Wu, Y. M. (2017). The industrial structure effect of China’s minimum wage system [Master’s thesis, Guangdong University of Foreign Studies].

[15]. Autor, D. H., Katz, L. F., & Kearney, M. S. (2006). The polarization of the U.S. labor market. The American Economic Review, 96(2), 189–194.

[16]. Zhou, G. S., Ding, X. Y., & Zhang, W. H. (2023). Minimum wage standards, resident income inequality, and common prosperity: Analysis based on CFPS panel data. Economic Issues Exploration, (10), 31–47.

[17]. Cui, X. M., Yu, M. J., & Yuan, D. (2018). Minimum wage and domestic value-added in exports: Evidence from Chinese firms. World Economy, 41(12), 49–72.

[18]. Lu, X. B. (2016). The impact of China’s minimum wage on labor market supply [Master’s thesis, Wuhan University].

[19]. Sun, W. Z., Niu, D. X., & Wan, G. H. (2022). Transportation infrastructure construction and industrial structure upgrading: An empirical analysis based on high-speed rail construction. Management World, 38(03), 19–34+58+35–41.

Cite this article

Jin,W. (2025). Does the Minimum Wage Standard Weaken Income Polarization?. Advances in Economics, Management and Political Sciences,205,42-51.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: The 4th International Conference on Applied Economics and Policy Studies

ISBN: 978-1-80590-293-5(Print) / 978-1-80590-294-2(Online)
Editor: Florian Marcel Nuţă Nuţă, Xuezheng Qin
Conference website: https://www.icemgd.org/
Conference date: 20 September 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.205
ISSN: 2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

For authors
For editors
For reviewers

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.