The higher cost of doing business in China: Minimum wages and firms’ export behavior

2016-03-01

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Ongoing discussion in China on how increasing labor costs affect firms' exports•We examine the relationship between minimum wage adjustments and firms' exports.•We use an extensive dataset of Chinese manufacturing firms from 1998 to 2007.•Chinese exports seem negatively correlated with minimum wage adjustments.•We find a non-negligible decrease in both the decision and value of exports.