| 摘 要： | Along with rapid economic growth over the past several decades in China, wage and income inequalities have also widened over time. This paper analyzes the relationship between the labor market institutions and the labor market outcomes by focusing on the effects of China＇s compulsory minimum wages on wage inequality. The study chooses the year of 2004 as a starting point in consideration of the fact that the new regulation of minimum wages begun to implement in 2004. The main purpose of the study is to utilize quantitative methods to investigate whether the new regulation played a role in preventing wage inequality from further widening. The results show that, without the increases of minimum wages from 2004, the overall wage inequality could further widen in 2006. This observation holds true for male and female workers and for different regions. The paper concludes that China＇s compulsory minimum wages might raise the wages of poor-paid workers, but the system itself is only one instrument in helping poor-paid workers. To a large extent, the rise of workers＇ wages depends on tripartite collective wage bargaining. For China, where the real function of trade union has been questioned, solving the issues of widening wage and income inequalities still has a long way to go.
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