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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:English
English
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
https://etd.uum.edu.my/3585/
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spelling my.uum.etd.35852023-03-19T01:16:19Z https://etd.uum.edu.my/3585/ Minimum Wage Policy Effects on Economic Growth Siti Nur Aishah, Mohd Hashim 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 NonPeerReviewed text en https://etd.uum.edu.my/3585/1/s808261.pdf text en https://etd.uum.edu.my/3585/8/s808261.pdf Siti Nur Aishah, Mohd Hashim (2012) Minimum Wage Policy Effects on Economic Growth. Masters thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
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
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
publishDate 2012
url https://etd.uum.edu.my/3585/1/s808261.pdf
https://etd.uum.edu.my/3585/8/s808261.pdf
https://etd.uum.edu.my/3585/
_version_ 1761621564130852864
score 13.211869

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