Resource allocation within firms is essential for their growth. We investigate how labor costs affect firms’ internal spatial distributions (ISDs) by using Chinese administrative data. We find that the increase in the minimum wage promotes firms to open establishments in regions with lower...

Resource allocation within firms is essential for their growth. We investigate how labor costs affect firms’ internal spatial distributions (ISDs) by using Chinese administrative data. We find that the increase in the minimum wage promotes firms to open establishments in regions with lower...