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Does the increase in the minimum wage standard affect corporate innovation? Empirical evidence from Chinese A-share listed companies

Year: 2026

Type: article

Abstract: Based on the data of Chinese A-share listed companies from 2000 to 2017, a system dynamic panel model is adopted to examine the impact and action mechanisms of the minimum wage standard on the “quantity” and “quality” of corporate innovation in China. Our study finds that: (1) the increase in the minimum wage standard can promote the improvement of both the quantity and quality of corporate innovation. (2) labor costs and R&D investment are two influential mechanisms; (3) this impact is heterogeneous due to differences in corporate ownership characteristics, industry factor intensity, and urban scale characteristics.

Source: Technology Analysis and Strategic Management

DOI: 10.1080/09537325.2026.2710685

Authors: Xinghua Cui, Xiangding Hou, Ning Xu, Qinliang Cheng

Institutions: East China University of Science and Technology, Jiangxi University of Finance and Economics, Hong Kong University of Science and Technology, Henan Normal University, Lanzhou University of Finance and Economics

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

Funder: National Natural Science Foundation of China