Does the increase in the minimum wage standard affect corporate innovation? Empirical evidence from Chinese A-share listed companies

Based on the data of Chinese A-share listed companies from 2000 to 2017, a system dynamic panel model is adopted to examine the impact and action mechanisms of the minimum wage standard on the “quantity” and “quality” of corporate innovation in China. Our study finds that: (1) the increase in the minimum wage standard can promote the improvement of both the quantity and quality of corporate innovation. (2) labor costs and R&D investment are two influential mechanisms; (3) this impact is heterogeneous due to differences in corporate ownership characteristics, industry factor intensity, and urban scale characteristics.