Vol. 3 No. 3 (2024)
Articles

THE EFFECT OF MINIMUM WAGE LAWS ON EMPLOYMENT RATE

Kpakol, Barivure Nennii
Department of Management, Faculty of Management Sciences, University of Port Harcourt. vurenen81@gmail.com
Prof. Edwinah Amah
Department of Management, Faculty of Management Sciences University of Port Harcourt

Published 2024-03-09

Keywords

  • Minimum wage laws,
  • Employment rate,
  • Unemployment rate,
  • Public interest theory

How to Cite

Kpakol, Barivure Nennii, & Edwinah Amah. (2024). THE EFFECT OF MINIMUM WAGE LAWS ON EMPLOYMENT RATE. Scholarly Journal of Management Sciences Research, 3(3), 1-19. https://www.openjournals.ijaar.org/index.php/sjmsr/article/view/445

How to Cite

Kpakol, Barivure Nennii, & Edwinah Amah. (2024). THE EFFECT OF MINIMUM WAGE LAWS ON EMPLOYMENT RATE. Scholarly Journal of Management Sciences Research, 3(3), 1-19. https://www.openjournals.ijaar.org/index.php/sjmsr/article/view/445

Abstract

This study examined the effect of minimum wage laws on employment rates. The aim of the study was to investigate how minimum wage laws affect employment rates. To achieve this aim, the study adopted the public interest theory to explain the effect of minimum wage laws on employment rates. The study also adopts content analysis, which involves reviewing past studies on the effect of minimum wage laws on employment rates. After this intensive review of past studies, it was discovered that minimum wage laws and employment rates are crucial indicators of economic stability and growth. When employment rates are high, it indicates a healthy labor market and increased economic activity. This leads to higher consumer spending, increased tax revenues, and overall economic growth. The minimum wage laws have opposing effects on job creation because when the minimum wage is high, employers find it difficult to employ more people, and a low employment rate can indicate economic downturns or recessions as job losses result in reduced consumer spending and economic contraction. Based on these findings, the study recommended that the government recognize that the impact of minimum wage laws may vary across regions with different economic conditions; therefore, policies should be designed to account for regional disparities in wages, costs of living, and labor market dynamics. This can help ensure that minimum wage laws are set appropriately to avoid adverse employment effects in specific regions. The government should continuously monitor and evaluate the impact of minimum wage laws on employment rates. This can help policymakers understand the specific effects in different sectors and regions, allowing for evidence-based adjustments and improvements to minimum wage policies.

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