Minimum wage bill defeated in Parliament
The demand to raise New Zealand’s minimum wage has decline. We live in a society where government has to make balance between employers and employees. Workers want better paying job and at the same time employers want to control labour cost. Therefor government put the floor of minimum wage “a minimum wage is the lowest wage that each employee can legally get from an employer” (exclusive papers). This is the lowest amount that a worker can sell his/her labour and that is what we need for better economy right now especially not a price ceiling which is "a set below the market price, then a "shortage" is created; ...view middle of the document...
Industries that does not need experienced workers in large amount. The research shows it may affect different segments of workers.
New Zealand has divided the minimum wage according to new entrants wage 11$(young) and adult wage13.75$.As we compared two labour market has different effect economy, adult could cost more than young, the employers are most likely to hire young people. The examine data of 1993 shows a 10% increase in the minimum wage increases the employment of youngsters by 6.9 percept and the same wage increases the adult unemployment rate by 3.5 percentage points(Tim Maloney,1995).
Effect on Men and women sector are also depend on various factors (marital status, size of a family). Hospitality industries prefer women as a waiter and agriculture industry prefers men as a field worker. Therefore depending on the sector there is an equal need of men and women in the market,” increasing the minimum wage would not change the gender pay gap significantly” (NZHRC, 2011).however a young women or a women have children are less likely to get a job then men but qualification could play an important role women or a men with good knowledge or qualification are more likely to hire (Guyenne Kalb & Rosanna Scutella, 2003)
The minimum wage does not prevent everyone from getting any job. But the minimum wage does make it more difficult for those who already have a hard time getting a job (Donald R. Deere, n.d.).The market of skilled workers may not start from minimum wage as they are skilled and experienced, however Students or part timer which comes under less experienced or unskilled would face problems in keeping their job and if they are already finding it hard to get a job it would be impossible for them if the wage increased. Therefore Minimum wage dose have concusses and many time those concusses is not good for the people, it is supposed to help.
But considering the four role players of the money flow (lecture 2) that keeps the market going are household, factory, business and market. The diagram shows how they perform in the society.
Household as a workers or let us say farmers would give the raw material (crops)...