DSpace Repository

The Redistributive Effects of a Minimum Wage Increase in New Zealand. A Microsimulation Analysis

Show simple item record

dc.contributor.author Alinaghi, Nazila
dc.contributor.author Creedy, John
dc.contributor.author Gemmell, Norman
dc.date.accessioned 2022-07-12T02:26:28Z
dc.date.accessioned 2019-02-05T00:48:16Z
dc.date.available 2022-07-12T02:26:28Z
dc.date.available 2019-02-05T00:48:16Z
dc.date.copyright 2019
dc.date.issued 2019
dc.identifier.uri https://ir.wgtn.ac.nz/handle/123456789/20923
dc.description.abstract This paper examines the potential effects on inequality and poverty of a minimum wage increase, based on a microsimulation model which allows for labour supply responses. It then compares these outcomes with an alternative, commonly used policy of raising government welfare benefits, similarly aimed at poverty or inequality reduction. Results suggested that, due to the composition of household incomes, a policy of increasing the minimum wage appears to have a relatively small effect on the inequality of income per adult equivalent person, using several inequality indices. The minimum wage policy is not particularly well targeted at its objective, largely due to many low-wage earners being secondary earners in higher-income households, while many low-income households have no wage earners at all. However, an ‘equivalent’ policy of raising welfare benefits does not clearly demonstrate ‘target superiority’. Results suggest that while raising benefits has a greater ability to reduce most poverty measures examined, substantially smaller inequality reductions are found to be associated with benefit increases compared to a minimum wage increase. Thus benefit increases represent a relatively effective strategy for poverty reduction, mainly by targeting sole parents, but (like minimum wages) are also relatively ineffective if inequality reduction is the objective. en_NZ
dc.format pdf en_NZ
dc.language.iso en_NZ
dc.publisher Te Herenga Waka—Victoria University of Wellington en_NZ
dc.relation.ispartofseries Working Papers in Public Finance ; 02/2019 en_NZ
dc.subject Microsimulation en_NZ
dc.subject Income inequality en_NZ
dc.subject Poverty en_NZ
dc.subject Minimum wage en_NZ
dc.title The Redistributive Effects of a Minimum Wage Increase in New Zealand. A Microsimulation Analysis en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit School of Accounting and Commercial Law en_NZ
vuwschema.subject.anzsrcfor 140219 Welfare Economics en_NZ
vuwschema.type.vuw Working or Occasional Paper en_NZ
vuwschema.subject.anzsrcforV2 380119 Welfare economics en_NZ
dc.rights.rightsholder www.victoria.ac.nz/sacl/about/cpf en_NZ

Files in this item

This item appears in the following Collection(s)

Show simple item record

Search DSpace


My Account