The impact of minimum wage on employment, hours work and happiness of low wage workers in Kedah

• Main Author: Salania, Kanan
• Format: Thesis
• Language: English; English
• Published: 2013
• Subjects: HD4801-8943 Labor. Work. Working Class
• Online Access: https://etd.uum.edu.my/5189/1/s812405.pdf; https://etd.uum.edu.my/5189/2/s812405_abstract.pdf; https://etd.uum.edu.my/5189/

This study estimates the effects of minimum wage on employment (working or not working), hours of work and happiness level of low wage workers in Kedah, Malaysia. The panel data are collected and it is used to examine the effects of minimum wage in Kedah, Malaysia. The panel data enables the use of the technique of difference estimator - before and after the implementation of the minimum wage. The results show that implementation of the minimum wage has no effects on the employments during the period of study, however it significantly reduces hours of work per day on average, increase significantly overall life happiness, increase happiness level of low wage workers at work but insignificantly and increase the basic salary. Increase in minimum wage helps the low wage workers meet the basic needs as suggested in Maslow theory of motivation. Most of the companies having difficulties in implementing the minimum wage, thus it is recommended that, government can divide the minimum wage to several rates such as for Adults (21years and over), Young Development Rate (18-20 years), Young Person Rate (under 18 years) and Apprentices (without age limit)