This guy is no economist but he simply puts our Singapore's version of minimum wage, progressive wage model just like an economist.
He even gives a good debate on the merits and pitfalls of progressive wage.
A very good read!
http://gotmoneygothoney.blogspot.sg/2014/09/progressive-wage-model-revisited-please.html
" Over-estimation of the true and fair value of the labour will lead to costs being pushed up, while under-estimation gives companies the perfect excuse to keep wages at the mandated rate forever. The government have to be very accurate and sensitive to the market, because this PWM system is not self-correcting. That is why ever so often, you will hear the minimum wage hike debate happening in America. Collective agreements are slower to take effect, but they have a self-correcting mechanism built-in. "
He even gives a good debate on the merits and pitfalls of progressive wage.
A very good read!
http://gotmoneygothoney.blogspot.sg/2014/09/progressive-wage-model-revisited-please.html
" Over-estimation of the true and fair value of the labour will lead to costs being pushed up, while under-estimation gives companies the perfect excuse to keep wages at the mandated rate forever. The government have to be very accurate and sensitive to the market, because this PWM system is not self-correcting. That is why ever so often, you will hear the minimum wage hike debate happening in America. Collective agreements are slower to take effect, but they have a self-correcting mechanism built-in. "
