Source: New Zealand Institute of Economic Research
06 October 2021
There are three main fears about the minimum wage in New Zealand: that the rate is politically motivated, that it will cost jobs, and that it will not solve serious social problems.
Newly-released NZIER Insight 96, The tale of Goldilocks and the three fears (about the minimum wage) analyses these fears.
It concludes that resolving these fears requires recognising that the minimum wage is a Goldilocks policy. Set too low, it will limit the contribution employment can make to wellbeing; set too high, it could cause real economic harm.
Insight 96 can be read here.