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  1. Principles of minimum wage policy
    economics, institutions and recommendations
    Author: Herr, Hansjörg; Kazandziska, Milka
    Published: 2011
    Publisher:  ILO, Geneva

    Minimum wage policy supported by a strong social policy is an efficient mechanism against poverty and income erosion of the poorest households. Minimum wage is one of the instruments which can control wage dispersion and in this way reduce income... more

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 451 (11)
    Inter-library loan:
    No inter-library loan

     

    Minimum wage policy supported by a strong social policy is an efficient mechanism against poverty and income erosion of the poorest households. Minimum wage is one of the instruments which can control wage dispersion and in this way reduce income inequality. It can also help to prevent a general decline in the level of nominal wages and deflationary developments. For almost two decades now Japan has been suffering from deflationary tendencies triggered by falling nominal wages and unit-labour costs (Herr/Kazandziska 2010). There is a certain likelihood that the United States, Europe and other OECD countries will fall into a deflationary trap over the next decade, and a minimum wage policy could help to reduce this danger. The purpose of this paper is to discuss the principles of minimum wage policy whereby economic dimensions as well as institutional and political questions are taken into account. In the next section of the paper different theoretical views regarding the question of minimum wages are summarised. We concentrate on the neoclassical and Keynesian paradigm. Then institutional and political questions are discussed. Who sets the minimum wage, how is it determined, how frequently is it adjusted, which criteria are taken into account when deciding about the amount of the minimum wage, etc. Moreover, the connection to wage bargaining and the importance of minimum wages for unions are thoroughly examined.

     
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    Content information
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/96394
    Series: Global Labour University working papers ; 11
    Subjects: minimum wage; low income; wage policy; Brazil; Cambodia; China; India; Iran, Islamic Republic; Malaysia; Namibia; Nigeria; Russian Federation; South Africa
    Scope: Online-Ressource (IV, 22 S.)
  2. The implementation of minimum wage
    challenges and creative solutions
    Author: Benassi, Chiara
    Published: 2011
    Publisher:  ILO, Geneva

    While minimum wage is widely debated at both academic and political levels, little attention has been dedicated to documenting and assessing the implementation of and compliance with minimum wage policies. This paper begins to fill this research gap... more

    Location:
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    Signature:
    DS 451 (12)
    Inter-library loan:
    No inter-library loan

     

    While minimum wage is widely debated at both academic and political levels, little attention has been dedicated to documenting and assessing the implementation of and compliance with minimum wage policies. This paper begins to fill this research gap by identifying and qualitatively assessing a variety of minimum wage implementation mechanisms. The theoretical framework delineates various frameworks that explain what implementation strategies might be effective in achieving compliance with minimum wage. The empirical part offers examples of how these elements have been implemented in practice. First, it provides an overview of existing implementation mechanisms drawn from across the globe. Then, the British minimum wage implementation system is illustrated in detail. Finally, additional implementation strategies from the broader field of labour regulation are presented with a view to diversifying and strengthening minimum wage implementation. Based on the documentation of these strategies, five types of measures should be included in setting up an effective implementation system: First, persuasion strategies should be used to build public support for the minimum wage and encourage employers to comply voluntarily. Second, capacity building measures such as information sessions and training seminars should be undertaken so that employers and workers are informed about the minimum wage and so that employers know how to implement it in their firms. Third, the monitoring system should allow the detection of non-compliance. Labour inspections should be reinforced and carried out, especially in the sectors at risk; complaint procedures should be made more accessible and safer to workers and their representatives. Fourth, workers should be empowered to enforce their wage rights not just through individual complaints, but also through collective action, as workers fear retaliation when they are required to undertake individual action. For instance, unions should be given access to information on workers' wages, the opportunity to organize workers and the power to act on workers' behalf. Finally, sanctions should be structured such that they constitute an actual deterrent to non-compliance. This means that the cost of sanctions should be higher than the benefit of workers' underpayment. Moreover, the application of sanctions should be sure and incremental.

     
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    Content information
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/96391
    Series: Global Labour University working papers ; 12
    Subjects: minimum wage; wage payment system; wage policy; labour inspection; sanction; developed countries; developing countries; UK
    Scope: Online-Ressource (IV, 52 S.)