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Minimum wage debates in a developing country setting: Evidence from Papua New Guinea

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  • Benedict Imbun

Abstract

Contributing to the broader topic of minimum wage determination in developing countries, this article discusses the shaping and implementation of minimum wage policy in Papua New Guinea (PNG). It begins by outlining the institutional arrangements under which minimum wage rates are determined in PNG. It then critically examines the argument that wage levels in the country are unsustainably high – a claim that has perennially characterised Papua New Guinea (PNG) minimum wage fixing. The article argues that, on the contrary, wage levels are indeed low and not adequate to reasonably support a single worker, let alone a family in an urban setting. This counter-argument is discussed in the context of debates over minimum wage levels and their relationship to economic growth, employment creation, international competitiveness, and capacity to pay. Whilst focusing on the PNG wage fixing system, the article thus sheds light on the dilemmas and challenges facing wages policy generally in a developing country setting.

Suggested Citation

  • Benedict Imbun, 2015. "Minimum wage debates in a developing country setting: Evidence from Papua New Guinea," The Economic and Labour Relations Review, , vol. 26(1), pages 137-153, March.
    • Handle: RePEc:sae:ecolab:v:26:y:2015:i:1:p:137-153
    DOI: 10.1177/1035304615570807
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    More about this item

    Keywords

    Central wage fixing; developing country; minimum wage; minimum wages board; Papua New Guinea; PNG;
    All these keywords.

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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