National minimum wage could stimulate the economy

With South Africa's unemployment rate sitting at over 25%, the question of whether a National Minimum Wage would solve the issue remains debatable.

The issue of a national minimum wage has remained a talking point among labour unions, opposition parties and the governing African National Congress.

702's John Robbie spoke to Professor of Labour Studies at the City University of New York, Stephanie Luce, regarding the matter.

Listen to the conversation below:

The visiting professor said while the policy issue isn't the only solution to South Africa's high unemployment rates, she said putting the subsidy in place would stimulate economic growth through the circulation of money among consumers.

It's not the ultimate solution, but country after country is finding that it's one way of reducing inequality and can be a job creator.

Prof Stephanie Luce, international expert on living wages
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