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Why a national minimum wage is a good thing

While National Minimum Wage discussions are in the spotlight, there is conclusive evidence suggesting that the implementation of a National Minimum Wage in South Africa could have a positive impact on inequality and poverty.

Dr. Asghar Adelzadeh, Director and Chief Economic Modeler at Applied Development Research Solutions (ADRS) chats to John Robbie about his statistical modelling system that predicts the impact of a national minimum wage in South Africa.

Dr Adelzadeh said that while it is difficult to work out an average for a minimum wage, it is very beneficial for dealing with poverty and inequality.

Minimum wage raises the income of workers which increases rising demands for good and services. The private sectors can therefore still benefit. Minimum wages also reduce the need for social grants as well as stimulating the economy.

Dr. Asghar Adelzadeh, Director and Chief Economic Modeler at Applied Development Research Solutions (ADRS)

Listen to the conversation below:

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