Does the Minimum Wage Standard Weaken Income Polarization?

Based on panel data from the China Household Tracking Survey spanning 2010 to 2022, this study investigates the impact and mechanism of minimum wage standards on income polarization at the county level. The findings indicate that increases in the minimum wage significantly exacerbate income polarization. This effect is realized through industrial structure upgrading and moderated by productivity and labor supply, with a more pronounced impact in low-income regions. Accordingly, policy recommendations are proposed to optimize income distribution, provide targeted assistance to farmers, and promote coordinated regional development.