Minimum Wage Policy Effects on Economic Growth

The purpose of this study is to examine the relationship between minimum wage policy and economic growth for the period 2000 – 2005. To achieve the objective, we estimate a growth model by employing the panel ordinary least square (OLS) and panel estimated generalized least square (EGLS) method. A s...

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Main Author: Siti Nur Aishah, Mohd Hashim
Format: Thesis
Language:eng
eng
Published: 2012
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Online Access:https://etd.uum.edu.my/3585/1/s808261.pdf
https://etd.uum.edu.my/3585/8/s808261.pdf
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institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Abd. Karim, Mohd Zaini
topic HB Economic Theory
spellingShingle HB Economic Theory
Siti Nur Aishah, Mohd Hashim
Minimum Wage Policy Effects on Economic Growth
description The purpose of this study is to examine the relationship between minimum wage policy and economic growth for the period 2000 – 2005. To achieve the objective, we estimate a growth model by employing the panel ordinary least square (OLS) and panel estimated generalized least square (EGLS) method. A sample consists of 61 countries with and without minimum wage and 33 were used in this study. For the minimum wage measure, we used minimum wage dummy, excess wage and minimum wage ratio to GDP as separate variables. We also include additional variables namely initial GDP, population growth, investment, trade openness, government expenditure and gross enrolment ratio. The results of the study show that, first, countries with minimum wage policy have higher economic growth. Second, the level of minimum wage does not affect economic growth for the countries that have the minimum wage policy. Based on the findings, countries should implement minimum wage policy since it would increase income for the worker and at the same time have positive effect on economic growth. The results also support the minimum wage policy that will be implemented in Malaysia.
format Thesis
qualification_name masters
qualification_level Master's degree
author Siti Nur Aishah, Mohd Hashim
author_facet Siti Nur Aishah, Mohd Hashim
author_sort Siti Nur Aishah, Mohd Hashim
title Minimum Wage Policy Effects on Economic Growth
title_short Minimum Wage Policy Effects on Economic Growth
title_full Minimum Wage Policy Effects on Economic Growth
title_fullStr Minimum Wage Policy Effects on Economic Growth
title_full_unstemmed Minimum Wage Policy Effects on Economic Growth
title_sort minimum wage policy effects on economic growth
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2012
url https://etd.uum.edu.my/3585/1/s808261.pdf
https://etd.uum.edu.my/3585/8/s808261.pdf
_version_ 1776103620997021696
spelling my-uum-etd.35852023-03-19T01:16:19Z Minimum Wage Policy Effects on Economic Growth 2012 Siti Nur Aishah, Mohd Hashim Abd. Karim, Mohd Zaini Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HB Economic Theory The purpose of this study is to examine the relationship between minimum wage policy and economic growth for the period 2000 – 2005. To achieve the objective, we estimate a growth model by employing the panel ordinary least square (OLS) and panel estimated generalized least square (EGLS) method. A sample consists of 61 countries with and without minimum wage and 33 were used in this study. For the minimum wage measure, we used minimum wage dummy, excess wage and minimum wage ratio to GDP as separate variables. We also include additional variables namely initial GDP, population growth, investment, trade openness, government expenditure and gross enrolment ratio. The results of the study show that, first, countries with minimum wage policy have higher economic growth. Second, the level of minimum wage does not affect economic growth for the countries that have the minimum wage policy. Based on the findings, countries should implement minimum wage policy since it would increase income for the worker and at the same time have positive effect on economic growth. The results also support the minimum wage policy that will be implemented in Malaysia. 2012 Thesis https://etd.uum.edu.my/3585/ https://etd.uum.edu.my/3585/1/s808261.pdf text eng public https://etd.uum.edu.my/3585/8/s808261.pdf text eng public masters masters Universiti Utara Malaysia Adams, S. and David, N. (2005). The Effects of Living Wage Laws: Evidence from Failed and Derailed Living Wage Campaigns. NBER Working Paper No. 11342. Adie, D.K. (1973). Teen-Age Unemployment and Real Federal Minimum Wages. Journal of Political Economy, Vol. 81 (March/April), 435-441. Askenazy, P. (2003). 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