The minimum wage and corporate tax planning

• Main Authors: LI, Xiaoxi, LIM, Chee Yeow, XU, Yanping
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Minimum Wage; Tax Avoidance; Labor Cost; Accounting; Taxation
• Online Access: https://ink.library.smu.edu.sg/soa_research/1861; https://ink.library.smu.edu.sg/context/soa_research/article/2888/viewcontent/SSRN_id3447024.pdf
• Institution: Singapore Management University

This paper investigates the impact of the minimum wage (MW) on corporate tax planning. By exploiting heterogeneity in the MW level across cities and over time in China, we find that increases in the MW are associated with greater tax planning by firms. Our results are robust to the consideration of...