New Zealand has the ninth-highest minimum wage in the world when the pay rates are adjusted for their purchasing power, according to an international study.
Yet people insist it is too low. The more useful measure is the ratio of the minimum wage to the median wage, and this is what the current data is:
1. NZ 68.7%
2. France 62.5%
3. UK 61.1%
4. Australia 53.9%
5. Spain 53.4%
6. Germany 50.6%
7. Ireland 50.1%
8. Canada 49.9%
9. Greece 48.5%
10. Netherlands 48.3%
11. US 25%
To stop the minimum wage being an annual lotto draw, I would pass a law setting it at say 65% of the median wage. That would still be higher than all our peers, but means the focus will be on lifting wages through productivity, not through legislation.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders
2. France 62.5%
3. UK 61.1%
4. Australia 53.9%
5. Spain 53.4%
6. Germany 50.6%
7. Ireland 50.1%
8. Canada 49.9%
9. Greece 48.5%
10. Netherlands 48.3%
11. US 25%
To stop the minimum wage being an annual lotto draw, I would pass a law setting it at say 65% of the median wage. That would still be higher than all our peers, but means the focus will be on lifting wages through productivity, not through legislation.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders
7 comments:
How about no minimum wage and let the market decide. With what you can receive on a benefit the market would have to pay a decent wage to get workers.Thomas Sowell states that higher wages causes unemployment. Minimum wages increases youth unemployment.
NZs minimum wage has to be high to feed the NZ cartels.
No not cocaine,... food, electricity, and banking.
If Mr Luxon installs a finance minister who isn't dim and dishonest, LIDL and ALDI could be here in a shot.
Those 2 supermarkets are credited with making AUSSIE grocery bills $10,000 a year cheaper than ours!
You are fully licensed and bonded by RANZ aren’t you, pollster David Farrier?
I don't agree with David about the more useful measure being the ratio of minimum to median wage as this still tells us nothing about the standard of living that either wage brings with it.
Having a high minimum wage encourages people to work rather than rely on benefits. Working people are moreover less likely to commit crimes, suffer family disintegration and juvenile delinquency, etc., all of which cost the State money.
People who earn enough to be able to afford a decent standard of living (subjective as that is) are more content than those who bludge and are less likely to cause trouble thereby adding to social harmony.
I would go so far as to suggest that some of the public money currently used for benefits and social services be used to subsidise the wages of workers on the minimum wage who represent a loss to their employer.
I suspect a similar relative review of our welfare benefits would be similarly revealing. The wonder is that so many especially girls, opt for other than life on a benefit. I guess for blokes having to constantly present for jobs in a state to make rejection certain could be taxing.With a child or few females evade this ritual. Having viewed modern state units the lifestyle appears notably attractive, although not all of the neighbours..
Anon@6.24 has my support and is, indeed, what Dr Thomas Sowell has maintained. His economic wisdom, based on data, I'd back any day.
People should stop banging on about getting Aldi here to lower our grocery bills. If they thought they could turn a profit (shock, horror ) in our small market, they would have applied by now
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