| Title: |
Macroeconomics of Minimum Wage Draft: Do not quote MACROECONOMIC EFFECTS OF MINIMUM WAGE IN NIGERIA: A GENERAL EQUILIBRIUM ANALYSIS |
| Authors: |
Abiodun O. Folawewo; Jel Code |
| Contributors: |
The Pennsylvania State University CiteSeerX Archives |
| Source: |
http://www.csae.ox.ac.uk/conferences/2007-EDiA-LaWBiDC/papers/042-Folawewo.pdf. |
| Publication Year: |
2007 |
| Collection: |
CiteSeerX |
| Description: |
This paper examines the macroeconomic effects of minimum wage (MW) policy in Nigeria using a static computable general equilibrium. Data for the study is drawn from year 2005 National Account of the country. The data is used to construct a 22 x 22 social accounting matrix (SAM) for the economy. The calibration exercise shows that the model’s parameters are able to replicate the baseline data with acceptable precision. Simulation results show that a rise in MW would lead to increased productivity in all economic sectors. The impact of MW increase on employment is mixed; while it leads to marginal rise of employment in agricultural sector, there is a marginal fall in services sector’s employment, and no significant effect in manufacturing and mining and oil sectors. In terms of price effect, an increase in MW would lead to a significant rise in general price level. A rise in MW has positive effects on household income and consumption, as well as on government balances. |
| Document Type: |
text |
| File Description: |
application/pdf |
| Language: |
English |
| Relation: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.558.5197 |
| Availability: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.558.5197; http://www.csae.ox.ac.uk/conferences/2007-EDiA-LaWBiDC/papers/042-Folawewo.pdf |
| Rights: |
Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: |
edsbas.2075FFA7 |
| Database: |
BASE |