| 简介： | This paper develops a new heterogeneous firm model under perfect competition in a Heckscher-
Ohlin setting. It shows that a binding minimum wage raises product prices, encourages substitution
away from labor, and creates unemployment. Less obviously, it reduces output and
exports of the labor intensive good, despite the price increase, and selection in the labor (capital)
intensive sector becomes stricter (weaker). Migration from rural areas increases if labor
demand is inelastic, but decreases otherwise. Exploiting rich regional variation in minimum
wage across Chinese prefectures we find robust evidence of these effects using Chinese Customs
data matched with firm level production data. |