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Pacific Islands labour market: will a minimum wage help?

Gounder, Neelesh N. and Reddy, Mahendra (2007) Pacific Islands labour market: will a minimum wage help? The Asia Pacific Economic Journal, 4 (2). pp. 139-154. ISSN 1354-7860

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"The poor economic performance of Pacific Island Countries (PICs) can be attributed to various factors. Not limited to these are, bad governance, absence of appropriate institutions or under performance of institutions and factor market rigidities.; One aspect of labour market, that of rigidity of wages rates and the impact of a minimum wage on PICs economies has had an important effect on investment and the development of the manufacturing sector. An examination of past studies ad theory and by logical extension of facts for PICs economies and labour market, it can be concluded that the imposition of a national minimum wage would be more harmful then [sic] beneficial. The PICs have been consistently trying to re-align their economic policies in the last two decades in order to respond to a globalizing world economy. As such, any policy that would add to a rigid labour market would be more regressive in nature and is likely contribute to the worsening economic woes of PICs economies. As an alternative, industry based wages councils would be a better mechanism for setting wage rates."

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Business and Economics (FBE) > School of Economics
Depositing User: Ms Mereoni Camailakeba
Date Deposited: 24 May 2007 07:50
Last Modified: 10 Jul 2012 06:27

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