Researchers from European Central Bank Report on Findings in Economics and Statistics (Consumption Response To Minimum Wages: Evidence From Chinese Households): Economics – Economics and Statistics

2026 JUN 29 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- New research on Economics - Economics and Statistics is the subject of a report. According to news originating from Frankfurt, Germany, by NewsRx correspondents, research stated, “This article evaluates the impact of the Chinese minimum-wage policy on consumption of low-wage households for the period 2002-2009. Using a representative panel of urban households, we find that the consumption response to minimum-wage income hikes increases in the share of minimum-wage income in total household income.”

Financial support for this research came from Swiss National Science Foundation (SNSF).

Our news journalists obtained a quote from the research from European Central Bank, “In particular, poorer households fully consume their additional income, while meaningful negative employment effects are absent. The large marginal propensity to consume is driven by households with at least one child, while poor, childless households save two-thirds of a minimum-wage hike.”

According to the news editors, the research concluded: “The expenditure increase is concentrated in health care and education with potentially long-lasting benefits to household welfare.”

This research has been peer-reviewed.

For more information on this research see: Consumption Response To Minimum Wages: Evidence From Chinese Households. Review of Economics and Statistics, 2026;108(3):737-754. Review of Economics and Statistics can be contacted at: Mit Press, One Rogers St, Cambridge, MA 02142-1209, USA.

The news correspondents report that additional information may be obtained from Ernest Dautovic, European Central Bank, Frankfurt, Germany. Additional authors for this research include Harald Hau and Yi Huang.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1162/rest_a_01411. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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