New Zealand has the highest minimum wage in the world


Utopia, you are standing in it!

John Schmitt  lists 11 margins along which  a minimum wage  might  cause changes:

  1. Reduction in hours worked (because firms faced with a higher minimum wage trim back on the hours they want)
  2. Reduction in non-wage benefits (to offset the higher costs of the minimum wage)
  3. Reduction in money spent on training (again, to offset the higher costs of the minimum wage)
  4. Change in composition of the workforce (that is, hiring additional workers with middle or higher skill levels, and fewer of those minimum wage workers with lower skill levels)
  5. Higher prices (passing the cost of the higher minimum wage on to consumers)
  6. Improvements in efficient use of labour (in a model where employers are not always at the peak level of efficiency, a higher cost of labour might give them a push to be more efficient)
  7. “Efficiency wage” responses from workers (when workers are paid more, they have a…

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2 thoughts on “New Zealand has the highest minimum wage in the world

    • Everyone knows that, Paul.
      The point I think of putting this up is to address the question of how and why NZ is a moderately successful country, despite such a socialistic policy about “minimum wages”.

      Perhaps they have a more strategically-focussed immigration policy then? So that such a high wage works, while not consigning NZ’s Old White Working Class to dependency-penury and ghetto-ization as an imprizoned StaliNazi-votariat.

      Like the one we have here.

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