Implementation Of Minimum Wage Research Articles

The introduction of a minimum wage in Germany and the effects on physical activity participation

The relationship between income and physical activity has been extensively studied. This paper utilizes the introduction of the minimum wage in Germany in 2015 as a quasi-experiment to determine the causal effect of minimum wages on the frequency of physical activity participation. Employing survey data from the German Socio-Economic Panel between 2013 and 2017, regression-adjusted difference-in-difference models combined with matching techniques are estimated. Our findings reveal a notable negative effect immediately after the minimum wage implementation on physical activity frequency. Given that the introduction of the minimum wage did not increase monthly gross income but reduced working hours, it appears that affected individuals exhibit preferences and engage in utility maximization that do not emphasize healthy behaviors. This effect is particularly pronounced among older females in white-collar occupations.

Trade unionism and the politics of minimum wage implementation in Bayelsa State, Nigeria, 2012-2022

This study investigated the role of trade unions (TU) in the politics of national minimum wage (NMW) implementation in Nigeria, with focus on Bayelsa State, 2019-2023. The problem of the study was that dynamics of power play and pursuit of selfish interest by leadership of the unions undermined the successful implementation of the 2019 NMW, particularly the consequential adjustment in wage. Marxist political economy was adopted as the theoretical framework of analysis. The study adopted mixed research method and applied the descriptive survey research design, by using both primary and secondary data. The study found that civil servants in Bayelsa State do not have good working conditions in terms of fully enjoying the 2019 NMW because the state government has a negative disposition towards the interests and welfare of civil servants. This is exacerbated by the weakness and ineffectiveness of the Nigeria Labour Congress (NLC), in such a way that the government and the leadership of NLC jointly exploit the workers. Fundamentally, the character of the national minimum wage law is major problem of NMW implementation in Nigeria. The study therefore recommended among others that Bayelsa State government should prioritize the welfare of civil servants in the State, bottom-up strengthening of the union and worker’s education consciousness should be encouraged and depolarization of the trade union, amendment of the NMW law in manner that accommodates percentile consequential adjustment relatively a new wage regime.

Industry perspectives on Malaysian hotel minimum wage issues

PurposeThe purpose of this paper is to investigate and compare the impact of the minimum wage order from the perspectives of two different stakeholders, namely, hotel managers and employees, in the Malaysian hotel industry.Design/methodology/approachFor the study, qualitative data were collected through semi-structured interviews from three managers and three employees from hotels in West Malaysia.FindingsFrom the managers’ perspective, minimum wage implementation has resulted in managers adopting the best payment structure to reduce labour costs for the operators, deciding to reduce the service charge allocation to employees and having to deal with minimal improvement in employee productivity and motivation. In contrast, the positive impact from the managers’ perspective is lower turnover intentions and social justice for foreign workers. From the employees’ perspective, there is a rather negative impact – minimum wage policy has resulted in a minimal increase in the salary. From a positive perspective, employees said that they have experienced an improvement in living standards.Originality/valueThis research presents current responses from hotel participants regarding the latest wage increase impact, some six years after its implementation.

Minimum Wage Reduce the Low-Skilled Foreign Workers in Malaysian Manufacturing Sector

The paper emphasizes on the implementation of minimum wage in Malaysia and subsequent increases of the minimum wage to estimate the minimum wage’s effect on the low-skilled foreign workers. High dependency towards the foreign works has been one of the major reasons for the Government to introduce the minimum wage policy in 2012. The study used questionnaire survey and focused on the manufacturing firms in Peninsular Malaysia that are registered with the Federation of Malaysian Manufacturers. We have conducted a panel analysis study covering periods of 2008 to 2017 to analyze the effectiveness of the minimum wage policy in reducing the low-skilled foreign workers. The findings suggested that the employers reduced their low-skilled foreign workers to respond to the implementation and the increase in the minimum wage. The higher statutory wages have caused the firms to reduce their less productive workers. Based on the analysis, we suggest that the companies tend to retain and hire more skills and productive workers in order to cope with the increase in the labour cost. Not only reducing the inflow of foreign workers, the minimum wage policy would have a significant impact towards productivity. Forging ahead with the fourth industrial revolution, productive workers are the key instruments for the firms to remain competitive in the industry as well as to accelerate their productivity and profitability.

Examining work factors after Malaysia’s minimum wage implementation

Purpose This study aims to generate novel insights about minimum wage policy implementation through a joint assessment of the mediating roles of work motivation, work engagement and job satisfaction in predicting outcomes such as turnover intention and work engagement. Design/methodology/approach Data were collected from hotel employees in Malaysia using an electronic survey. A total of 239 responses were used in analyzing direct and indirect effects. Findings Results reveal that work motivation, work engagement and job satisfaction significantly mediated the relationship between employee compensation satisfaction and employee turnover intention. Work motivation was found to mediate the relationship between employee compensation satisfaction and employee work engagement. Additionally, work engagement and job satisfaction mediated the relationship between employee work motivation and employee turnover intention. Research limitations/implications Missing data are inevitable in survey research. Due to data missing for some of the demographic questions, the moderating effect of certain demographic characteristics (e.g. sex) could not be assessed. Practical implications Given recent minimum wage policy implementation in Malaysia, it is imperative that Malaysian hotel operators understand to what extent employee compensation satisfaction influences how employees perceived their jobs and to what extent work motivation, work engagement and job satisfaction mediate employee compensation satisfaction and employee turnover intention. Originality/value This study makes a significant contribution to the hospitality compensation research area, specifically regarding the impact of compensation on how employees perceived their jobs after minimum wage implementation.

Dilema Pemberlakuan PP. No. 78 Tahun 2015 Tentang Pengupahan: Disparitas yang Kian Melebar

This study aims to examine the implementation of wage system in Indonesia based on Law No. 13/2003 and Government Regulation No. 78/2015 on labor conditions in Jabodetabek. The urgency of this study with regard to wage conditions in Indonesia that are still visible lags tend to widen the gap between workers and employers. It’s a policy study by collecting secondary data and then analyzed into a conclusion and a recommendation. Descriptive qualitative study method used data collection techniques such as: documentation of literature study, discussion and grouping of research object data. The results of the study indicate that the new formula in determining the minimum wage and annual wage increase in Indonesia has been implemented based on PP no. 78 years 2015 which is based on inflation rate and economic growth. The new formula of minimum wage determination is opposed by the workers on the basis of not accommodating the fulfillment of life-worth needs and narrowing the rights of workers in democracy demanding a decent wage increase. Entrepreneurs view PP Wage has not accommodate the condition of UMKM in the implementation of minimum wage that requires the structure of wages and wage scale (SUSU). The Regional Representative Council of the Republic of Indonesia (DPD RI), which is preparing the Wage System Bill, needs field data and facts related to the current wage condition. The important recommendations that can be considered by the DPD RI in the preparation of the Wage System Bill is the refinement of the legislative materials related to the evaluation of the components of Decent Living Needs (KHL) once in five years, the establishment of policies on the implementation of SUSU for UMKM and strengthening the supervisory function in the field of manpower especially in the regions

Myanmar's New Minimum Wage - What's Next? Policy Considerations for the Way Forward

In 2013, Myanmar’s government passed a new minimum wage law. While enacting the law was an important first step, turning it into an effective policy tool requires further steps to be taken. This CESD working paper targets Myanmar policymakers with the objective of providing them with some considerations for the way forward. More precisely, it suggests that there are three key pillars of an effective minimum wage implementation system that Myanmar policymakers should address from here onwards. First, it will be important to promote compliance with and, if needed, enforce the minimum wage law in order to, on the one hand, ensure that workers earn a minimum income that allows them to meet their own and their families’ basic needs and, on the other hand, to avoid a situation where non-compliant companies derive a competitive advantage from paying wages below the minimum. This will require efforts that incentivize compliance by employers, sanction non-compliance through penalties, and ensure proper monitoring through labor inspectorates. Second, monitoring and measuring the impacts of the minimum wage policy will be crucial to better understand the effects it has on various stakeholders, and to gauge whether the minimum wage is set at an appropriate level where the resulting benefits outweigh the costs of the policy. For such monitoring and evaluation exercises to be possible, the collection of reliable data will be essential, including through labor force and business surveys. The methodological approaches and empirical models for such impact assessments are well established – so Myanmar’s efforts in this area can draw on them. Third, regularly reviewing and adjusting Myanmar’s minimum wage system in the future will be vital to preserve its relevance by taking into account changes in the cost of living and wider economic conditions. This will require adequate institutional setups and governance mechanisms as well as decisions on the criteria to be used for such reviews and adjustments. Throughout, this working paper presents examples of approaches and practices in other countries, thereby offering valuable lessons and inspiration on the range of possible measures and mechanisms. Considering the three pillars delineated in this paper and learning from others will help Myanmar’s policymakers turn the minimum wage into an effective policy tool that contributes to putting the country on a trajectory of inclusive economic growth and shared prosperity.

Interprovincial differences in labour force distribution and utilization based on educational attainment in Indonesia, 2002–2015

AbstractIntroducing an employment variable with five levels of educational attainment per capita and employing inequality decomposition, this study addresses three questions. How does labour force vary by education and provinces? How does labour force utilization vary by education and provinces? What are the potential causes of differences? We find that the no‐primary‐education group is more endowed in less‐developed provinces and allocated most unequally among education groups across provinces, despite past universal primary education policies. The senior‐secondary‐education group with the largest labour share is a growing concern due to the lower employment rate and largest interprovincial inequality.

Implementation of Minimum Wage and Social Inequality Gap among Workers’ in Imo State Civil Service, Nigeria

Implementation of Minimum Wage and Social Inequality Gap among Workers’ in Imo State Civil Service, Nigeria

Gender Discrimination in the Implementation of Minimum Wage in Hattar Industrial Zone Haripur Khyber Pakhtunkhwa (Pakistan)

With reference to the Action Research Course jointly sponsored by Church world Service Pakistan (CWSP) and Free and Fair election network (FAFEN), it was expected that in HIE, the food factories are involved in gender discrimination while implementing minimum wage act and pay less salaries to women workers as compare to men. The major objective of this research study is to know about the ground realities women are facing regarding to Gender Discrimination, Labor Law, Civil and Social Law’s, and Social, Financial and Occupational Safety. In this regard, Semi Structure Interviews (SSI) of women and men workers of Factories was taken. It is concluded that inequality in achievement of occupations is an astounding wonder between male and females. It is additionally discovered that not a single factory had a Union or Collective Bargaining Agent (CBA). This means that workers have no channel to raise their voices against any discrimination they face. The probability of harassment at the hand of owner or male supervisor is high. Government should make some solid developments for unbiased work opportunities, improving institutions and framework.

The Impact of Setting a Minimum Wage on RMG Sector: A Dynamic Panel Analysis

This paper investigates the influence of the implementation of minimum wage on productivity level, using dynamic panel analysis, over the period 1994 to 2014. The convergence hypothesis implies that socioeconomic indicators (per capita income, literacy rate, life expectancy, political stability, regulatory quality of the government) have no influence on productivity for these time period. However, minimum wage plays a significant role of increasing productivity. Panel investigation reveals that 1 percentage increase in minimum wage have an effect on productivity by 0.56 percent (at the 0.05 significance level). In addition to that, Bangladesh should formulate an automatic adjustment formula for minimum wage in an institutional basis.