Impact of Minimum Wage on Farmers' Human Capital Investment

Abstract

This paper matches the 2012 economic and social survey project data of the western minority regions with the macroeconomic data such as the minimum wage, and tests the specific impact of the minimum wage on farmers' human capital investment. The study found that for every one standard deviation of the minimum wage, the probability of farmers choosing government training, corporate training and self-training will be reduced by 75.57%, 7.75% and 16.69%. At the same time, the minimum wage helps to reduce the frequency of smoking and the frequency of alcohol abuse among farmers, and promotes the improvement of individual health status of farmers. Compared with female farmers, the minimum wage has a more significant negative impact on the frequency of male farmers' drinking; compared with low-educated farmers, the minimum wage has a more significant negative impact on the frequency of alcohol abuse among highly educated farmers.