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
Subjects:	HB Economic Theory
Online Access:	https://etd.uum.edu.my/3585/1/s808261.pdf https://etd.uum.edu.my/3585/8/s808261.pdf
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id	my-uum-etd.3585
record_format	uketd_dc
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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Minimum Wage Policy Effects on Economic Growth

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