Statistical analysis and data processing: A case study of employment effects of minimum wages

Different methods of sample collection, data processing and model setting always bring about different results in statistical studies. This article chooses the case of nine cities in Hubei province to make a statistical analysis on the employment effects of statutory minimum wages. After the indicators selection and models setting, this article utilizes the weighted average method to process the yearly data and make the nominal data deflated by price index. Then by making two kinds of test ( Hausman test and Breusch-Pagan test) separately on the models set, this article finally chooses the fixed effects model and the results of estimation indicate that the changes of the minimum wages have no significant negative effect on the employment in the current period, but such effects may be significant in the future period, inferring that the labor market in central China is closer to the monopsony power theory. However, considering the limitations of data collection in the domestic, it is also needed to enlarge the range of samples to constitute the larger panel data and explore the methods of data mining in the future.