what are the advantages of having a national minimum wage in developing countries?

Question

instead of a minimum wage per province, wherein the minimum wage of people working in the city would be higher than those living in the provinces,.

Answer 1

To start with, there are very few advantages to having a minimum wage at all. If a minimum wage is set at below-market levels, it is meaningless. If it is set at above-market levels, it contributes to higher unemployment and/or criminalization of the economy.

Answer 2

A minimum wage addresses one fundamental problem in labor markets- grossly inflated supply. Basically, the demand for labor is almost always more powerful than the suppliers. So they can push wages down to the point that a veritable slavery system exists. Such a system discourages long term economic development, however. A minimum wage gurantees that employers can't tie up inordinate amount of resources. Remember that they will still hire workers because it is still very profitable, just not as profitable. The workers can then afford to spend more money, which leads to more demand, etc.

No credible studies exist that show reasonable minimum wages deter economic growth, but there are a number that indicate the opposite- that when workers are payed decently it leads to greater economic growth. It the basic idea behind a middle class and economic mobility.

Answer 3

it was an atempt to reduce poverty, but often the governments of theese countries set the line of minimum wage too low, so the poor stay poor, and if the rate other benefits like social help depend on a minimum wage, the poverty is on the firm ground. it is not very eficient instrument of social policy

Answer 4

I have to agree with NC. Minimum wage is more likely to eliminate your job than to increase your earnings.