Minimum wage rises don't cost jobs or work hours, RBA research says   :)

16 May 2018 The Age


Increases in the minimum wage have not resulted in any job losses or fewer hours of work, research published by the Reserve Bank of Australia has found, in a set of unprecedented findings that is likely to kick-off another round of brawling between the Turnbull government and Labor.

The paper, published by the central bank's economic research department on the final day the Fair Work Commission hearings had to decide if 2.3 million Australians will get a pay rise in July, found "no evidence that small, incremental increases in award wages had an adverse effect on hours worked or the job destruction rate".

It used a sample of 32,000 jobs between 1998 and 2008, when award wages were increased by a flat dollar amount each year, to find jobs with larger award wage rises had larger increases in hours worked than jobs experiencing a smaller award wage rise.


Food delivery rider Matthew

"I am able to rule out adverse effects on hours worked. I also find that award wage increases do not have a statistically significant effect on the job destruction rate," said researcher James Bishop.

"If anything, the point estimates suggest that the job destruction rate actually declines when the award wage is increased."


The Turnbull government has not taken an official position on whether the minimum wage should rise this year, while Labor has called for a boost above the rate of inflation, at 1.9 per cent.

Last year, the Coalition ignited a political battle after lodging a submission that said a major increase in the minimum wage was "not an efficient way to address relative living standards or the needs of the low-paid", and argued strongly that wage increases had to be supported by higher productivity or job losses would follow.

The RBA paper said their results may not "necessarily generalise to large, unanticipated changes in award wages", cautioned it only included adult positions, and that the consequences of wage increases may "be borne by job seekers, rather than job holders".

"There will always be some point at which a minimum wage adjustment will begin to reduce employment," the paper stated.

Unions have been campaigning for a $50 a week increase, significantly less than what employers have signalled they are willing to pay.   :)

The National Retail Association - one of the nation's major retail organisations in a sector with 1.3 million employees - has called for a wage freeze, while The Australian Industry Group has argued for a 1.8 per cent bump in the National Minimum Wage, equivalent to $12.50 per week.

Figures released by the Australian Bureau of Statistics on Wednesday showed retail workers were already taking a pay cut in real terms, with wages rising at 1.5 per cent, which is below the rising cost of a consumer basket.   :(

Overall wage growth recorded its second lowest quarterly result in two decades on Wednesday, increasing by 2.1 per cent in the year to March.

AI Group chief executive Innes Willox told the Fair Work Commission hearing on Wednesday that the $50 per week demanded by the ACTU would inflict significant harm on the economy.



The ACTU has released advertising and a campaign aimed at stagnant wages, pushing an increase if $50 per week.   :)

"It would do nothing to boost productivity and would lead to even more spare labour capacity due to the widespread job losses that would result," he said.

Food delivery rider Matthew, a former statistics student who also gave evidence to the Fair Work panel, called for minimum wage standards to apply to all food delivery riders.

When he started working as a rider two-and-a-half years ago, Matthew was paid $14 per hour and $5 per delivery on a standard contract.

Those were "the golden days," he said.

Now riders get as little as $7 a delivery, without any additional hourly payment. And some can wait up to two hours between delivery jobs. "These guys are making $14, $7 or $0 per hour," he said.   :(

The Fair Work Commission is expected to hand down its decision on the minimum wage in early June, with an increase taking effect from July 1

We all need a payrise but that wont be happening under libtards

Its time wrote on May 17^th, 2018 at 7:45am:

We all need a payrise but that wont be happening under libtards

Everyone knows that so theres no point even trying. Thing is its not likely under labour either and they are supposed to support the worker.

Spot

whiteknight wrote on May 17^th, 2018 at 7:07am:

Minimum wage rises don't cost jobs or work hours, RBA research says   :) 16 May 2018 The Age Increases in the minimum wage have not resulted in any job losses or fewer hours of work, research published by the Reserve Bank of Australia has found, in a set of unprecedented findings that is likely to kick-off another round of brawling between the Turnbull government and Labor.

How's our car industry doing?

salad in wrote on May 17^th, 2018 at 8:24am:

whiteknight wrote on May 17th, 2018 at 7:07am: Minimum wage rises don't cost jobs or work hours, RBA research says   :) 16 May 2018 The Age Increases in the minimum wage have not resulted in any job losses or fewer hours of work, research published by the Reserve Bank of Australia has found, in a set of unprecedented findings that is likely to kick-off another round of brawling between the Turnbull government and Labor. How's our car industry doing?

Ask the Liberals. They're the ones standing over the body with a bloody knife in hand.

Quote:

Increases in the minimum wage have not resulted in any job losses or fewer hours of work, research published by the Reserve Bank of Australia has found, in a set of unprecedented findings that is likely to kick-off another round of brawling between the Turnbull government and Labor. The paper, published by the central bank's economic research department on the final day the Fair Work Commission hearings had to decide if 2.3 million Australians will get a pay rise in July, found "no evidence that small, incremental increases in award wages had an adverse effect on hours worked or the job destruction rate". It used a sample of 32,000 jobs between 1998 and 2008, when award wages were increased by a flat dollar amount each year, to find jobs with larger award wage rises had larger increases in hours worked than jobs experiencing a smaller award wage rise.

The idea that increasing the minimum wages kills jobs is a big lie with no supporting evidence.

It's not just in Australia where the big lie has been debunked. It has been debunked in the USA too. A similar study has been undertaken in the USA where they examined rises in the minimum wage going back to 1938. There was no correlation between increasing the minimum wage and employment levels.

Study here: Raise Wages, Kill Jobs? Seven Decades of Historical Data Find No Correlation Between Minimum Wage Increases and Employment Levels

salad in wrote on May 17^th, 2018 at 8:24am:

whiteknight wrote on May 17th, 2018 at 7:07am: Minimum wage rises don't cost jobs or work hours, RBA research says   :) 16 May 2018 The Age Increases in the minimum wage have not resulted in any job losses or fewer hours of work, research published by the Reserve Bank of Australia has found, in a set of unprecedented findings that is likely to kick-off another round of brawling between the Turnbull government and Labor. How's our car industry doing?

Destroyed by their parent companies in the US and Japan who went offshore hoping to find a cure for their gross economic mismanagement.... as before - that is a short term 'fix' that will end unless everyone out there begins to earn enough to pay for the products, and when that happens these companies will find themselves back in the same situation.

Same applies when that fails to happen - they will dissolve like the Wicked Witch Of the West.... no discretionary income to buy a high priced car - no sale.

salad in wrote on May 17^th, 2018 at 8:24am:

whiteknight wrote on May 17th, 2018 at 7:07am: Minimum wage rises don't cost jobs or work hours, RBA research says   :) 16 May 2018 The Age Increases in the minimum wage have not resulted in any job losses or fewer hours of work, research published by the Reserve Bank of Australia has found, in a set of unprecedented findings that is likely to kick-off another round of brawling between the Turnbull government and Labor. How's our car industry doing?

Just dandy just not here - shame that Hockey threw them out of Australia.

Minimum Wage Rises Don't Cost Jobs Or Work Hours

Everyone knows that.

It was always a lie but their has never been a honest way to oppose justified increases.

The old BlackDay is parroting the Socialist propaganda again.

All very old stuff long since shown to be just Socialist stupidity.

What do you think our Asian competitors would reckon after they stopped laughing as the hostile unions send the Australian firms broke and all the work goes to Asia ?

Wake up Lefties the Tariff Barriers came down many years ago.

juliar wrote on May 20^th, 2018 at 4:05pm:

The old BlackDay is parroting the Socialist propaganda again. All very old stuff long since shown to be just Socialist stupidity. What do you think our Asian competitors would reckon after they stopped laughing as the hostile unions send the Australian firms broke and all the work goes to Asia ? Wake up Lefties the Tariff Barriers came down many years ago.

Incorrect. It is something called "statistics". You may want to look that up because you haven't a clue what that means.

Which 'Asian competitors' are those? 

The ones who 'earn' billions by gross exploitation, or the billions exploited who earn $10 a day?

How does a $35 an hour worker here 'compete' with an exploiter who 'earns' billions by exploitation?

Who exactly are 'we' competing with?  And why should a business have that much control over national policy?

Shut and Lock the Gates!

This kind of insanity is what lead to tariff barriers in the first place.... now tariff barriers are becoming a necessity for national survival.

Now talk to me about global economies that know no nation and about the idea that 'equality' of all that knows no nations - depending on which side of the ideological fence you sit on.... SS - DD.....

Way out of his depth Lefty bungs on a bit of BamSPAM and ILLEGALLY MISQUOTES another poster. Have to correct such a shocking transgression.



Bam wrote on May 20^th, 2018 at 7:50pm:

juliar wrote on May 20th, 2018 at 4:05pm: The old BlackDay is parroting the Socialist propaganda again. All very old stuff long since shown to be just Socialist stupidity. What do you think our Asian competitors would reckon after they stopped laughing as the hostile unions send the Australian firms broke and all the work goes to Asia ? Wake up Lefties the Tariff Barriers came down many years ago. Incorrect. It is something called "statistics". You may want to look that up because you haven't a clue what that means.

Good to see the Grappler is grappling with the idea of returning to the TARIFF WALLS days when unions were king.

And goods were very expensive and choice was limited and industrial anarchy was the norm.

Who is making the goods that our Capitalist shops are full of and it is SO cheap ? (Obviously no hostile union menace there!!!).


And the Sen Button brought the Tariff Walls crashing down just like the Berlin Wall.

No surprise the irrelevant redundant Unions with hardly any "members" are waxing lyrical about a return to the industrial anarchy of the old Tariff Wall days and pinching money from the pensioners.

What an election winner for Malcolm.

juliar wrote on May 21^st, 2018 at 8:30am:

Way out of his depth Lefty bungs on a bit of BamSPAM and ILLEGALLY MISQUOTES another poster. Have to correct such a shocking transgression. Bam wrote on May 20th, 2018 at 7:50pm: juliar wrote on May 20th, 2018 at 4:05pm: The old BlackDay is parroting the Socialist propaganda again. All very old stuff long since shown to be just Socialist stupidity. What do you think our Asian competitors would reckon after they stopped laughing as the hostile unions send the Australian firms broke and all the work goes to Asia ? Wake up Lefties the Tariff Barriers came down many years ago. Incorrect. It is something called "statistics". You may want to look that up because you haven't a clue what that means.

You're not very bright, are you? Did you miss the part that wasn't struck out or were you just born with a blindness to detail?

Illegally? Really? After you've had pointed out to you several times that striking out irrelevant parts of the post is proper? If you insist on misrepresenting forum rules by posting scurrilous lies, you should delete your account. NOW. DO IT.