Open AccessEFFECT OF MINIMUM WAGE ON INCOME INEQUALITY (2020)
Author(s) -
Kamun Thakur
Publication year - 2022
Publication title -
indian scientific journal of research in engineering and management
Language(s) - English
Resource type - Journals
ISSN - 2582-3930
DOI - 10.55041/ijsrem11901
Subject(s) - economics , economic inequality , income distribution , minimum wage , inequality , income inequality metrics , per capita income , distribution (mathematics) , wage inequality , labour economics , wage , total personal income , demographic economics , gross income , public economics , mathematics , mathematical analysis , demography , tax reform , sociology , state income tax
Minimum wage is one of the most studied topics in economics. In this paper we aim to achieve its effect on income inequality, which is also one of the rising issues in many developing countries. Recent research studies have shown a steady increase in income inequality. An increase in minimum wage would help those in the lower end of the income distribution spectrum, thus reducing income inequality. We form an econometric model to account for many factors that affect income inequality including GDP per capita. We determine the relationship and conclude with policy recommendations for the future.