Effect of Inflation on Minimum Wages in Kenya
Journal Title: Journal of Social Economics - Year 2017, Vol 4, Issue 1
Abstract
The history of minimum wages in Kenya dates back to 1932. Minimum wages have been increasing at a rate lower than the rate of inflation, yet inflation is one of the parameters to be considered while fixing minimum wages. However, the Wage Guidelines (2005), the Labour Institution Act (2007) and the International Labour Organization Minimum Wages Fixing Convention No 131 of 1970 all require minimum wages to be aligned to inflation. The study estimated the effect of inflation on minimum wages using the random effect model based on panel data for the period 1990-2014. The findings show that inflation affects changes in minimum wages positively. The government should work towards pursuing policies that align increase in minimum wages to inflation.
Authors and Affiliations
Peter Dayan
Keywords
Related Articles
- EP ID EP28693
- DOI -
- Views 275
- Downloads 7
Education and FDI: An Insight from US Outflows
In modern economies the movement of capital has become more and more a key element and thereby the role of Foreign Direct Investments (FDI). The literature about FDI is truly comprehensive and deepened, ranging from th...
Fiscal Sustainability in South Africa: Recent Evidence
The objective of this study was to analyse how the South African government historically reacted to its public debt position during the sample period 1990-2013. Following diagnostic evaluation of the stationarity and c...
An Assessment of Nigeria Agricultural and Rural Development Bank’s Micro-Finance Services on Poverty Alleviation in Federal Capital Territory of Nigeria
This work attempts to examine the relationship between the application of microfinance services, particularly microcredit, and the alleviation of poverty. The relationship between education and environment as they affe...
Sustainability Issue: is Business-NGO Partnership a Panacea?
The question of whether social partnerships between business and NGO are able to resolve the challenges of sustainable development is still unresolved, and it seems that the answer to this question will never be straigh...
Value Orientation through Social Studies and Students’ Adjustment to Delinquent Social Behaviour in Akwa Ibom North East Senatorial District of Nigeria
Values may be acquired through formal education or through the family, mass media and other agents of interaction, but adjustment can also develop from within oneself. Education is capable of not only teaching but tran...