Profit sharing can lead to higher productivity and thus to higher firm profitability and employee wages. It may also enhance employment stability by enabling firms to adjust wages during downturns rather than lay off workers. While adoption of profit sharing increases earnings fluctuations, it...

Since China promulgated new minimum wage regulations in 2004, the frequency and magnitude of changes in minimum wages have been substantial. This paper uses county-level minimum wage data combined with urban household survey micro-dataset from 16 representative provinces as a merged county-level...