Low pay, the working of the labour market and the role of the minimum wage

Submitted by carolyn on Fri, 01/05/1998 - 12:25

by Sanjiv Sachdev and Frank Wilkinson

Published in May 1998

The authors highlight the positive contribution a national minimum wage can make to the economy if set at a high enough level. They provide figures about the effects of a minimum wage across different industries and occupations. The authors refute the argument that a NMW will cause job losses or inflation and warn that setting a minimum wage too low may deal with the worst excesses of employer power but will fail to tackle the economic problems underpinning the economy.



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