How a minimum wage can help SA

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(iStock)
(iStock)

New York - Recent research by Wits University’s National Minimum Wage Research Initiative (NMWRI) argues that workers receiving relatively more income from the implementation of a national minimum wage could boost domestic output and spending.

Several analysts, including Terry Bell in Fin24, and economist Dawie Roodt on Business Day TV, disagree.

Bell and Roodt argue, without providing evidence, that the potential increase in spending resulting from a national minimum wage would merely suck in imports, with the domestic economy not benefiting.

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