The employment effect of minimum wage in dual economy

Abstract

This article studies the employment effect of minimum wage under the dual economy from the two aspects of theoretical research and empirical analysis. Theoretical research shows that under the urban-rural dual economic structure, the employment effect of minimum wage presents obvious asymmetry. However, the empirical analysis about the employment of peasant workers and the minimum wage in Beijing shows that the growth of minimum wage has a negative effect on migrant workers' employment. Then we give some reasons to explain the result.