'It's important to model the economic impact of minimum wage'

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'It's important to model the economic impact of minimum wage'

16 November 2015 11:28 AM

Discussions continue between government, labour and business over the implementation of a uniform minimum wage.

Minimum wage policy researcher, Gilad Isaacs said that sophisticated models are needed to measure the economic impact of the national minimum wage.

According to Isaacs, it is critical for policy makers to consider the practicalities and structuring of the minimum wage by drawing on the international experience.

Listen to the full conversation from The Redi Tlhabi Show:

It is important to look at the design element - what a minimum wage would look like in South Africa. It is an intricate piece of labour market legislation.
— Gilad Isaacs, Coordinator of National Minimum Wage Research Initiative at Wits Universit

The National Minimum Wage Research initiative released a paper with global case studies were minimum wages have been implemented which showed the impact that they had on employment and inequality in those countries.

The more important matter that is however overlooked is the control of inflation whenever there is a #MinimumWage implementation@RediTlhabi
— Haddy 2.0 (@haddymo) November 16, 2015

@RediTlhabi the reason minimum wages are not implemented in SA its because our leaders are out to protect corporate profits and not people.
— TebogoMbedzi (@TebogoMbedzi) November 16, 2015

@RediTlhabi minimum wage doesn't mean increased salaries alone it goes further to quality service accessibility.
— Zeeee (@ZiyandaBandla) November 16, 2015

Written by: Qama Qukula