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Table of Contents
Ch. Section Page
Introduction 3
1 Economic efficiency of minimum wages 3 - 4
2 The effect on unemployment 4
3 The effect on use and cost of capital in production 4
4 The effect on cost of production and inflation 4
5 The effect on productivity 4
6 The effect on international competitiveness 4
7 The consequence for long-term sustainable economic growth and stability 4 - 5
8 The social consequence 5
9 Wage discrimination 5
10 Suggestions on dealing with unemployment 5
11 Literature consulted 5
Introduction
Minimum wage legislation was introduced in other countries as far back as 1894 in New Zealand followed by Australia in 1896, United Kingdom in 1909 and North America in 1912 (WordIQ (Online), http://www.wordiq.com/definition/Minimum_wage August 10); common to all of these introductions and also to South Africa is conflicting views on the advantages and disadvantages.
Economists, Human Resource Consultants and Human Rights Activists all have respective different arguments; however, common to all is the approach by governments to gain the favour of the voter majority. The question still remains, how beneficial then is minimum wage legislation?
Although the new legisla ...