Knowledgebase: General Questions about Labour Market Reform Project
Why isn’t enforcing a minimum wage a superior alternative to the proposed reforms?
Posted on 03 June 2014 09:08 AM
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A minimum wage would be very costly for Bahrain, and would be ineffective in reducing unemployment among low-skill Bahrainis.
It is true that many successful economies use a minimum wage. However, those economies have far fewer expats in their labour markets. In addition, the minimum wage tends to be set at a level that provides a safety net for only a small percentage of the labour force (an average of 7% across several OECD countries) rather than as a means of improving the welfare of a large portion of workers. | |
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