Not so fair pay
Article Abstract:
The Organization for Economic Cooperation and Development (OECD) has issued a report on the impact of the minimum wage. The report does not find clear evidence that a minimum wage reduces total employment levels. Minimum wages vary in relation to median wages. The minimum wage may be one reason for higher unemployment rates of younger people in some countries. The minimum wage may not help to reduce poverty where unemployment is a cause of low incomes, rather than low earnings. Minimum wages may have political appeal but the economic case for a minimum wage is less compelling.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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Paying the price
Article Abstract:
The UK government has expressed the view that a sharp increase in pay rises is having a negative impact on the economy. However, this view is not supported by a study by the London Business School which indicates that manufacturing productivity has actually rise by 4.4% a year on average since 1993. This means that substantial rises in pay in the manufacturing sector do not seem so unjustified. In contrast, productivity in the service sector has declined, with rising interest rates not really having had much of an impact on service providers.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1998
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Comment about this article or add new information about this topic: