National Minimum Wage Research Articles

Analysing the Impact of Minimum Wage Laws on Low-Income Workers in Selected Government Ministries, Agencies, Departments and Parastatals in Benue State

This study analyzed the Impact of Minimum Wage Laws on Low-Income Workers in Selected Government Ministries, Agencies, Departments, and Parastatals in Benue State. It specifically examined the impact of the National Minimum Wage Act on Minority Workers as well as the impact of the Labour Act on Rural Workers in selected government MDAs in Benue State. The target population is 2,803 and a sample size of 338 was derived from Krejcie and Morgan method. The hypotheses were tested with simple linear regression analysis on Statistical Packages for Social Science (SPSS) at a 5 percent significant level. Hypothesis one revealed a statistically significant negative impact of the National Minimum Wage Act on minority workers in selected government MDAs in Benue State. Hypothesis two showed that there is a strong negative impact of the Labour Act on Rural Workers in selected government MDAs in Benue State. The study concluded that there is a statistically significant negative impact of impact of minimum wage laws on low-income workers in selected government ministries, agencies, departments and parastatals in Benue State. It was recommended that policymakers need to review and adjust the National Minimum Wage Act to ensure fair compensation for minority workers in government MDAs by conducting wage audits and aligning wages with the local cost of living. Also, the government needs to revise the labour to address the unique challenges of rural workers in government MDAs by implementing region-specific policies and stronger enforcement mechanisms.

Is a single minimum wage policy viable option? Evidence from the impact of minimum wage on youth employment in Malaysia

The present study is aimed to identify an ideal mechanism to reduce negative effect of minimum wage on youth employment generation. Using available data from Department of Statistics, the study runs an annual panel regression at the state level based on fixed effect specification model. The finding demonstrates that the minimum wage has a negative effect on employment, particularly among youth. It implies that there is an excess of labour supply in the market at the current wage rate. As a result, the rate set is higher than equilibrium, signifying firm disadvantages. The negative effect is more prevalent if the single national minimum wage rate policy is applied to all states. Therefore, the national wage policy should be thoroughly examined. Instead, a regional wage rate should be explored as a potential solution for mitigating and preventing negative employment effects.

Institutional diversity and the immigrant wage gap? A comparison between the German and British experience with statutory minimum wages

ABSTRACT This article exploits the introduction of a sectoral minimum wage in the German construction industry and the National Minimum Wage (NMW) in the UK to examine the influence of minimum wages on the immigrant wage gap in two sectors with a large population of immigrant worker and varying wage-setting environments. Our results suggest that minimum wage reform may reduce the wage gap between immigrants and natives in liberal market economies where wage-setting arrangements are largely decentralized. As anticipated, this effect appears to be confined at the bottom end of the wage distribution with no apparent spill-over effects higher in the wage distribution.

Commoditizing of Human Beings: An Investigation into the Implications of Kidnapping on National Security in Nigeria

Society often frowns on things considered to be odd and abomination and have shown this in the treatment of Persons with Disabilities (PWDs). In developing nations such as Ghana it is quite common to find disabled at street corners begging for arms. This study seeks to assess the impact of the District Assembly Common Fund (DCF) on the socio-economic lives of PWDs and recommend ways to improve the policy. Using a double bowelled technique of both qualitative and quantitative methods of studies. 100 PWDs were selected and interviewed whiles 5 employees each of the social welfare and district assembly workers were also interviewed and analysis were done using Statistical Package Service Solution. Results were generated through descriptive and analytical statistics. The findings show that education; employment and income levels were too low among PWDs to impact positively on their socio-economic status hence more needs to be done to aid in their right to socio-economic freedom. Although the mean monthly income of respondents was GHC 145.20, 56.7% earned between GHC80.00 to GHC120.00, below the national minimum wage whereas at 2014 was GHC184.80.00 per month. Mean monthly income was higher among respondents who had some level of education compared to those who weren’t. The mean amount of money received from the fund was GHC 250.00. Although the PWDs stated that the funds were inadequate they iterated that it went a long way to aid in their livelihood. About 75% indicated that majority of their income was used mostly on food with the rest used for healthcare and other activities. Challenges associated with managing the District Assembly Common Fund ranged from several dimension spanning from the irregular and untimely desperation of funds to the poor administration of the funds. More so, social workers lack proper data and control over the identification of the PWDs in itself. We also found out that some PWDs had no idea of the scheme let alone to partake in it. It is encouraged that future studies should be directed towards a well-structured system for the distribution of items to the PWDs. Keywords : Poverty, Person with Disabilities, District Assembly Common Fund, Asuogyaman DOI : 10.7176/DCS/9-1-07

Research on the Effect of Minimum Wage on the Bargaining Power of Chinese Manufacturing

Based on the data of China's industrial enterprise database from 2003 to 2013 and the national minimum wage data at county (city) level, this paper investigates the impact of minimum wage policy on China's manufacturing bargaining power. The results show that (1) the increase of minimum wage will reduce the price markup of Chinese manufacturers and weaken the bargaining power of Chinese manufacturers. (2) Compared with the minimum wage adjustment in the lag period, the cost impact of the minimum wage in the current period is more intense in weakening the bargaining power of the manufacturing industry.

Does the Minimum Wage Affect Wage Inequality? A Study for the Six Largest Latin American Economies

Minimum wage (MW) policies are widespread in the developing world and yet their effects are still unclear. In this paper we explore the effect of national MW policies in Latin America’s six largest economies by exploiting the heterogeneity in the bite of the national minimum wage across local labor markets and over time. We find evidence that the MW has a compression effect on the wage distribution of formal workers. The effect was particularly large during the 2000s, a decade of sustained growth and strong labor markets. In contrast, the effect seems to vanish in the 2010s, a decade of much weaker labor markets. We also find suggestive evidence of a lighthouse effect: the MW seems to have an equalizing effect also on the wage distribution of informal workers.

The evolution of the minimum wage in Poland and its consequences on labour market

Poland is one of the 22 European Union members with national minimum wage legislation. The minimum wage level in Poland is legislated by the Minimum Wage Act of 2002 as amended. The aim of the study is twofold: first, to show the evolution of the minimum wage level in Poland with respect to other EU countries in the period of 2003–2023, second, to use the review of the literature as a research tool to find out whether there is a consensus on the impact of minimum wage changes on various labour market outcomes in Poland, i.e. the level of employment, wages, profits, or prices. To the best of our knowledge it is the first study of this kind for Poland.

Minimum wage in Bangladesh: Awareness and impact a case of leather sector

This paper aims to explore the awareness of the minimum wage among workers in the tannery sector and assess its impact on poverty. The national minimum wage is a policy instrument for protecting workers’ rights. It has an effect on the employment, inequality, equity, and poverty of the workers. The effect is assessed using descriptive and econometric tools and techniques. The regression analysis is used to find the key social and economic determinants of poverty, along with the components of the minimum wage. In total, 120 workers are randomly chosen for interviews. The study shows that workers are less aware of the minimum wage, and 89% report the non-availability of the minimum wage. Nearly 55% of the workers’ families live below the poverty line. The Probit model-based regression results show that the implementation of bonuses and annual increments according to the minimum wage policy reduces the odds of poverty significantly. The presence of workers’ unions has no effect on the eradication of poverty, but household characteristics, particularly household size, are found to be a key factor in poverty. Sector experts consider non-compliance a governance failure in the tannery sector and suggest awareness campaigns, a reduction of job informality, and sanctions as deterrents to non-compliance.

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.

Assessing the Effectiveness of Financial Literacy Programmes in Promoting Financial Resilience among Low-Income Populations

Financial literacy and strategic financial management are interconnected and essential for achieving financial resilience, especially among individuals with low income. Thirteen women were chosen to participate in a one-day training session on financial literacy and planning in Brgy. Digkilaan, Iligan City, the Philippines. The community services programme prioritises addressing financial planning concerns due to the moderate degree of financial literacy, clear financial objectives, established financial planning practices, and active involvement of participants. The life cycle hypothesis theory was employed to assess the financial situations of workshop attendees, with a particular focus on women. Analysis of financial position was conducted using a pre-test on financial planning and literacy, a workshop presentation, a post-test, and a response profile form. The findings provide distinctive perspectives on financial profiles, allocation, and analysis. There has been a financial profile enhancement in planning and Islamic activities, but the chosen individuals restricted from earning a salary that exceeded the national minimum wage, which categorised them into the quadrant of vulnerable groups. This study shows that while the chosen individuals have higher salaries, they lack effective financial management, posing risks and limiting economic advancement. Therefore, consistent financial literacy programs are essential to build financial resilience, especially for women.

Analysis of the new EU Adequate Minimum Wages Directive

Although under the Treaty on the Functioning of the European Union the EU does not have competence to set minimum wages (Article 153), the EU adopted a directive on an adequate minimum wage in 2022. The aim of the directive is to encourage the convergence of national minimum wages upwards, ensuring a decent standard of living in all EU countries. The purpose of this article is to analyse the actions included in the Directive and to assess the adequacy of its legal framework. Interest in the new EU minimum wage regulations stems from the ineffectiveness of the existing and temporarily 'paused' mechanism in Russia, which links the minimum wage to 42% of the median wage. In an explanatory memorandum to the law which reformed the minimum wage in Russia in 2021, the authors refer to the "European experience". An analysis of the new EU directive showed that although it is largely advisory in nature, the EU obliges member states to ensure a decent level of the minimum wage that can be calculated on the basis of 60% of the median gross wage or 50% of the average gross wage. In addition, the EU establishes the factors to be taken into account in determining the minimum wage: the purchasing power of the statutory minimum wage in relation to the cost of living; the general level of wages and their distribution; the rate of wage growth; long-term national productivity levels and its development.

Minimum wage and spillover effects in a minimum wage society

AbstractMinimum wage policies are widely implemented in developing countries, but their consequences remain uncertain. This study empirically investigates the impact of the minimum wage on monthly income inequality and its spillover effects in Turkey between 2004 and 2022, utilizing comprehensive micro data. We aim to shed light on the impact of national minimum wage policies by examining their diverse influences on the wage structure within the country. Our findings reveal that the minimum wage significantly reduces income disparities, particularly among formal workers at the lower and upper end of the wage distribution. While wage gaps below the median wage decline, those above it experience a slower growth rate, ultimately leading to wage convergence. Notably, this effect is more pronounced during macroeconomic instability from 2016 to 2022, compared with the relatively stable period of 2004–15. Moreover, the outcomes differ depending on individual attributes like gender, age, education, and other relevant factors. Furthermore, we observe tentative evidence of a lighthouse effect to some degree: the minimum wage seems to exert an equalizing influence on the wage structure of workers in the informal sector beyond a certain percentile.

Should We Abolish The Minimum Wage?

The discussion on minimum wage is a long-standing debate in economics. The fundamental objective of a NMW is to assist individuals who are remunerated at a low wage that yields below average living standards. To mitigate poverty, the government enacts laws that compel companies to compensate their employees at a wage that surpasses the equilibrium free market price for labour. On the other hand, an increase in the national minimum wage may also lead to an increase in the social unemployment rate. This essay will examine and critically evaluate the merits and drawbacks of NMW policies, and conclude that governments should not abolish the minimum wage altogether.

The impact of national minimum wage policy on inflation and unemployment in South Africa: A segmented regression analysis

The impact of national minimum wage policy on inflation and unemployment in South Africa: A segmented regression analysis

Uber's digital labour platform and labour relations in South Africa

AbstractMotivationWith rising unemployment in South Africa, new forms of digital work transcend legal conceptions and discourses on work. Uber's digital labour platform (DLP) has the potential to reduce unemployment and improve the livelihoods of South African households.PurposeWe examine the nature of employment through digital platforms to assess how such employment conforms to labour law and regulation in South Africa, the responsibility of the Department of Employment and Labour (DEL).Methods and approachWe review the literature on the gig economy, decent work, and labour relations. We examine Uber DLP in South Africa to assess its potential to create decent work given DEL's current labour regulations. We analyse factors that harm the relationship between Uber DLP and DEL.FindingsDespite numerous constitutional provisions governing DLP and DEL, Uber DLP workers in South Africa are considered independent contractors not entitled to employee benefits. Uber DLP employees in South Africa make less than the national minimum wage after the platform deducts its fees. Few professional drivers own the cars they drive; they rent them from owners, known as “partners,” and split the earnings, meaning that the drivers earn very little.Policy implicationsDEL needs to establish a balance between flexibility and labour standards. DEL should preserve workers' rights and ensure financial stability in the digital age. Labour laws should be updated based on reliable data while considering the effects of digitally enabled employment on society and the economy. Platform workers need the same protection at work as other workers.

Health literacy of informal caregivers: findings from a Portuguese study

Abstract Background Health literacy (HL) concerns the knowledge and competences of people to meet the complex demands of process of caring. Providing health care to someone can be an extremely demanding task that requires a combination of skills and knowledge. HL can be considered a key factor in promoting the health of both the informal caregiver and the cared person. The aim of this study was to assess the characteristics associated with health literacy among informal caregivers. Methods A cross-sectional study was conducted through an online survey directed to informal caregivers. It was applied the Portuguese version of European Health Literacy Survey (HLS-EU-PT-Q16) and it was calculated a 0-50 Score. Bivariate analyses were performed using one-way ANOVA, independent T-tests, and Pearsońs correlation, at a 5% significance level in SPSS®. Results In total, 760 informal caregivers were surveyed, mean age 57 years (±9.9), 92.5% female, 62.6% married or living with a partner, 41,5% higher education, 44.4% works full or part-time, 58.7% receives up to two national minimum wages. Regarding the process of care, 78.9% takes care of one person, 85.2% have been caring for more than 1 year, 54.3% feel that are not supported at all, and 20.3% do not feel competent to care. The mean HL score (n = 673) was 31.9 (+7.8), and 58.6% has a problematic or inadequate HL level. Education (p < 0.001), marital status (p = 0.030), employment (p < 0.001), family income (p < 0.001), perception of general and mental health status (p < 0.001), level of support (p < 0.001), level of perceived competence (p < 0.001), access to health care (p < 0.001) and access to information (p < 0.001) were associated with the informal caregivers’ HL Score. Conclusions Socioeconomic determinants are associated with HL Score, better socioeconomic status is associated with a higher level of health literacy among informal caregivers. Future studies focused on these determinants are needed to better understand and act on them. Key messages • Health literacy levels are associated to socioeconomic determinants, better socioeconomic status is associated with a higher level of health literacy among informal caregivers. • Higher levels of health literacy are associated with higher levels of perceived competence to provide care.

Nonequivalence Between Imprisonment and Fines in United States Sentencing Guidelines

Objective: Seeking rational uniformity and proportionality of sentencing in United States Sentencing Guidelines. The United States has been establishing and updating its sentencing guidelines and structure based on the Sentencing Reform Act since 1984, aiming to improve the ability of the criminal justice system to fight crimes through an effective and fair sentencing system. Thus the objective here is to evaluate whether that aim has been met. Method: Through normative research, the economic analysis of law was utilized to study the sentencing in the 2021 United States Sentencing Guidelines and its manual, especially comparing imprisonment and fine sentences. At the same time, comparing the imprisonment sentence and the fine sentence as the imprisonment alternative with the help of local economic variables, the minimum wage. The differentiation between the fine sentence or fines and its imprisonment alternative is calculated for each statute in the US Sentencing Fine, especially under §5E1.2.(c). (3). - Fines for Individual Defendants’ Fine Table, and combining it with the minimum and maximum values in Sentencing Table in §5A to find the differentiation value or reference value or each row to analyse if any pattern emerged. Then compare it with the second objective, the United States’s national minimum wage is used to calculate the minimum and maximum imprisonment statute to calculate the amount of money a normal person working legally in the worst condition, paid in the minimum wage, can collect in the same length amount of time. Results: This research shows that: a) there is no equivalence between imprisonment and a fine sentence in the United States Sentencing Guidelines, and b) imprisonment has lesser economic value than its alternative sentence. Both findings are against the purpose of seeking rational uniformity and proportionality of sentencing. The nonequivalence above demonstrates the structure and guidelines of the United States sentencing system, which have several excellences compared to the sentencing system of other countries, such as Indonesia’s prior Penal Code Book. However, the United States sentencing system is also flawed, which needs improvements in applying economic analysis and efforts to fix the flaws.

How common is low pay in Britain? New findings from linked data

ObjectivesThe Annual Survey of Hours and Earnings (ASHE) is the main source of public statistics on low pay in Britain. As part of the ADR-funded Wage and Employment Dynamics Project, we identify and adjust for non-response biases in ASHE and generate new estimates of the incidence of low pay.
 MethodsWe linked the ASHE data to the Business Structure Database – a research-ready version of the UK’s official register of businesses. This linked dataset enabled us to identify which types of employers were more or less likely to respond to ASHE in a given year, and to generate non-response adjustments to the existing ASHE weights.
 We then used the unique personal identifier on ASHE to link observations across years. We compared rates and correlates of longitudinal attrition in ASHE with rates and correlates of employment exit observed in the ONS Annual Population Survey, generating longitudinal weights to account for non-random attrition.
 ResultsWe find that jobs in smaller organisations, younger organisations and those in the private sector are under-represented in the annual achieved samples from ASHE, relative to their prevalence in the wider economy. The percentage of jobs paid at or below the National Minimum Wage is under-estimated by around one fifth if one does not take account of these cross-sectional response biases.
 We find that longitudinal attrition is more likely to affect younger employees and those with low job tenure. However, we do not find that estimates of the rate at which employees move off the National Minimum Wage to higher rates of pay are biased by non-random patterns of longitudinal attrition.
 ConclusionData linking enables us to identify observable response biases in the UK’s official source of earnings statistics (ASHE). These biases affect our view of the bottom of the wage distribution, and have the potential to affect decisions around a key area of government labour market policy.

ANALYSIS OF WAGE LEVELS DYNAMICS IN UKRAINE AND THE EU COUNTRIES AS A COMPONENT RESEARCH OF THE LABOUR MARKET CONDITIONS

At the present stage of deepening the processes of Ukraine's European integration, studies of the state and prospects of development of the labour markets of Ukraine and the European Union countries are becoming increasingly relevant, since in recent years, according to some indicators of the labour market functioning, there has been a process of their separation (structural divergence), which has disintegration potential. In particular, one of the structural factors of their divergence is the imbalance in the field of remuneration.The article is devoted to the study and analysis of the dynamics of wages in Ukraine and the European Union as one of the components of the labour market research process. To achieve this goal, the author used a number of general scientific andspecial research methods interrelated and consistently applied in the work: the method of abstraction, theoretical generalisation, analysis and synthesis, induction, graphical and analytical method (graphs of dynamic changes in indicators).Based on a review of the minimum wages in the European Union, it is determined that in 2022 the EU countries will be divided into three groups: with a national minimum wage of more than EUR 1,500 per month; with a national minimum wage above EUR 1,000 but below EUR 1,500 per month; and with a national minimum wage below EUR 1,000 per month.It is established that the EU labour market has gender and cross-country imbalances in remuneration, while the Ukrainian labour market has gender and regional imbalances. It is determined that there are a number of global problems in the labour market. In the area of remuneration, these include low levels of minimum and average wages, excessive differentiation in remuneration in different regions and sectors of the economy, high and growing wage arrears, lack of connection between wages and the level of employee's qualifications and performance, and the existence of shadow remuneration schemes. The labour market conditions in Ukraine are of a falling type, as they are characterised by an excess of demand over supply (a decrease in vacancies and an increase in the number of unemployed) and a decrease in market prices (the real wage index)

Productivity effect of minimum wage in the manufacturing sector of Malaysia

This study measured the effectiveness of Malaysia's minimum wage by assessing the effect of minimum wage on productivity in the Malaysian manufacturing sector. Panel data covering a 10-year period were collected from 297 manufacturing firms in Peninsular Malaysia that were registered with the Federation of Malaysian Manufacturers (FMM) and analysed using static panel data regression to examine the effect of minimum wage on productivity. Panel data analysis revealed that the study's random effect model (REM) was the best model to describe the relationship between the minimum wage and productivity. The study found that the minimum wage improved labour productivity. Therefore, the minimum wage policy that was introduced in Malaysia under the Minimum Wage Order 2012 increased firms’ productivity. Increasing workers' wages motivated them to be more productive. This study's results are useful in highlighting to regulators, policymakers, manufacturing associations, employers, and workers the effects of the minimum wage. The implications of the findings will help improve the national minimum wage policy.