Open AccessRole of minimum wages in rebalancing the economy
Author(s) -
Rani Uma,
Belser Patrick,
Ranjbar Setareh
Publication year - 2013
Publication title -
world of work report
Language(s) - English
Resource type - Journals
ISSN - 2049-9280
DOI - 10.1002/wow3.37
Subject(s) - minimum wage , poverty , economics , work (physics) , inequality , labour economics , efficiency wage , set (abstract data type) , wage , economic growth , computer science , engineering , mathematics , mechanical engineering , mathematical analysis , programming language
Minimum wages can be a powerful tool for supporting decent work goals and can be a crucial component to the strengthening of social protection floors and poverty alleviation efforts. This paper argues that effectiveness of minimum wages depends on three aspects: first, on the legal coverage of minimum wage systems; second, the level at which minimum wages are set; and third, the ability to ensure compliance with legal minimum wage provisions, so as to ensure the goal of improving incomes and reducing inequality.