The Impact Of Minimum Wage On Employment Level And Productivity In Nigeria
This research work has been carried out to analyze the critical impact of minimum wage of employment level and productivity in Nigeria. A brief literature on wage and its determination was highlighted. Models on minimum wage effect are being look into. This includes research work done by different economist analyzing it (Minimum wage). Data on minimum wage (Independent variables), employment and productivity (dependent variables) were got from the Federal Bureau of Statistics. For better computation of data, the data got was run through the computer using the coefficient of determinants, the student's t-test and the standard variable, wi-minimum wage variable. This was undertaken to analyze the effect of minimum wage had on employment and productivity. Also, in order to compare data ranging from 1980, 1982 . 1983 and 1984 were used. Based on the finding of this research work, the minimum wage did not have a serious negative effect on employment as expected. As for productivity, minimum wage had a positive effects but is was not as high as expected i.e (minimum growth). In the light of the above, recommendations such as subsidies rather than wage restraint was given. A more realistic minimum wage that will put majority above subsistence level were also given for better policy making.
Keywords: Wages, Employment, Productivity and Development
JORIND Vol. 5 (2) 2007: pp. 14-14