DO MINIMUM WAGES REDUCE EMPLOYMENT? A CASE STUDY OF SARAWAK’S SERVICE SECTOR
Abstract
This paper examines the impact of minimum wages using a survey data of services sector in Sarawak. Dependent t-test and regression analysis were conducted to determine the impact of minimum wages on employment. Although minimum wages increased salary, but the impact on employment is very small. Most of the findings do not support minimum wages reduce employment, in contrast with competitive labour market prediction.
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