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Minimum-Wage Fixing and Economic Development

  • N. N. Franklin

Abstract

Though coverage and effectiveness of enforcement vary widely, most developing countries now have some system, national or sectoral, of state regulation of minimum wages.2 Indeed, regulation of minimum wages is one of the main instruments available to governments that wish to influence the level and structure of wages. Four possible purposes of minimum-wage fixing may be distinguished to bring the lowest wages up towards the general level of wages paid for similar work; to exert upward pressure on the general level of wages as a whole; to eliminate ‘unfair competition’; and to serve as one among a number of instruments of a comprehensive policy aimed at promoting rapid growth and fair sharing of the national income.

Keywords

Minimum Wage Collective Bargaining High Wage Wage Increase Wage Earner 
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Notes

  1. 1.
    C. St J. O’Herlihy, ‘Minimum-Wage Effects in the United States’ (I.L.O., Geneva, D.16/1967), roneoed.Google Scholar
  2. 1.
    Conditions approaching these seem to have obtained for many years in the South African farming industry where persistent complaints of a shortage of labour failed to result in wage increases sufficient to cut back the demand and enhance the supply to a point at which the shortage disappeared. [S. T. van der Horst, Native Labour in South Africa (Cape Town 1942) 147, 234, 258]. But adequately documented current examples of this sort of wage’ stickiness’ have not been easy to find.Google Scholar
  3. 3.
    W. Arthur Lewis. Development Planning (1966) 92. 94.Google Scholar

Copyright information

© The International Institute for Labour Studies 1969

Authors and Affiliations

  • N. N. Franklin

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