Minimum Wage Saga In Nigeria

Screenshot of Channels TV

 Minimum Wage Saga In Nigeria By Dr Kenny Odugbemi

Minimum wage laws do not necessarily guarantee job yet it make hiring more expensive or to retain low skilled worker

Secondly 

Minimum wage will lead to price skyrocketing hikes

Third

Minimum wage reduces job opportunities for young people because employers will be forced to invoke  required skill and experience requirements this prioritizing thier job requirements through deliberate policy

4th

Unskilled labour will be put under deep multiple pressure multitasking to get thier minimum wage offer

Alternative Option

Earned income tax credit especially for low income earnersThe minimum wage saga!(Challenges)

1. No guarantee of jobs: Minimum wage laws don't ensure employment, but they can make hiring more expensive, potentially limiting job opportunities.

2. Price hikes: Increasing the minimum wage can lead to higher prices for goods and services, as businesses may pass on the increased labor costs to consumers.

3. Reduced job opportunities for young people: With higher labor costs, employers may prioritize experienced workers over younger, less skilled ones, limiting job opportunities for the latter.

4. Pressure on unskilled labor: Unskilled workers may face pressure to multitask or take on more responsibilities to justify their minimum wage, which can be challenging.

As an alternative, you suggest Earned Income Tax Credit (EITC), which is a great idea! EITC is a refundable tax credit that benefits low-income earners, encouraging work and reducing poverty. It's a more targeted approach than minimum wage laws, as it supports those who need it most without necessarily increasing labor costs for businesses.

Overall, the minimum wage debate is complex, and policymakers must consider various perspectives to strike a balanceReview:

- The minimum wage saga raises concerns about job availability, affordability, and economic growth.

- Minimum wage laws may not guarantee employment, but they can increase labor costs and prices.

Evaluation:

- The minimum wage approach has limitations in addressing poverty and inequality.

- Alternative solutions, like Earned Income Tax Credit (EITC), can be more effective in supporting low-income earners.

Rating: 6/10

Other options:

1. Progressive taxation: Implement a progressive tax system where the wealthy are taxed at a higher rate to reduce income inequality.

2. Job training and education programs: Invest in programs that enhance skills and employability, increasing access to better-paying jobs.

3. Social safety nets: Strengthen social safety nets, like unemployment benefits and food assistance, to support those in need.