Professor Walter Oi, an American labour economist, writes: "A policy that can raise the wages of those at the bottom of the wage ladder with no job losses is remarkable. It rivals a perpetual motion machine or alchemy," he said.
The professor argued that fringe benefits, such as training, could be reduced by a minimum wage. "Minimum wage laws can raise cash wages, but the consequences are fewer jobs and a deterioration of the utilitarian value of the job package."
The Government is setting up a Low Pay Commission to take evidence from unions and employers, over the next year, on what level a minimum wage should be set.Reuse content