A Study of Minimum Wages, Global Impact, and Human Rights

This research paper examines the concept of minimum wages across the globe, exploring the opinions of different countries and analyzing their positive and negative impacts on people. It investigates the role of Human Rights in controlling worker wages, addressing research questions about minimum wage definitions, international perspectives, and the effects on individuals. The study employs a secondary research methodology, reviewing existing literature to understand the complexities of minimum wage policies, considering factors such as job hunting motivation, single parents' financial situations, and employee morale. The paper concludes with recommendations for wage structures and the importance of aligning wages with employee performance.

Research Paper

ABSTRACT
Different type of changes takes place around the world. Changes are made so
that strong community can be developed in which people are satisfied. Main focus of
the research is done on identifying the minimum wages that are applied around the
world. To conduct the research in effective manner, secondary method is used in which
all the journals on similar topic are considered. These are helpful enough to focus on
the findings that are made by others. In addition to this, the findings show that workers
are able to live standard life when they are provided with higher minimum wages. The
recommendations states that employees should be provided with wages as per their
performance.

Contents
ABSTRACT...................................................................................................................... 2
CHAPTER 1: INTRODUCTION........................................................................................1
1.1 Background information..........................................................................................1
CHAPTER 2: LITERATURE REVIEW..............................................................................3
2.1 Introduction.............................................................................................................3
2.2 Concept of minimum wages...................................................................................3
2.3 Determine the opinion given by different countries for wages................................3
2.4 Positive and negative impact of wages to people...................................................4
2.5 Role of Human Rights to control wages of workers................................................5
CHAPTER 3: METHODOLOGY.......................................................................................6
3.1 Introduction.............................................................................................................6
3.2 Research approach................................................................................................6
3.3 Data collection........................................................................................................6
3.4 Data analysis..........................................................................................................6
3.5 Ethical consideration.............................................................................................. 7
CHAPTER 4: RESULTS/FINDINGS................................................................................8
CHAPTER 5: DISCUSSION.............................................................................................9
5.1 Concept of minimum wages...................................................................................9
5.2 Opinion given by different countries for wages.......................................................9
5.3 Positive and negative impact of wages to people.................................................10
5.4 Roles of Human Rights to control wages of workers............................................11
CHAPTER 6: CONCLUSION AND RECOMMENDATION.............................................12
6.1 Conclusion............................................................................................................12
6.2 Recommendation................................................................................................. 13
REFERENCES...............................................................................................................14

CHAPTER 1: INTRODUCTION
1.1 Background information
Around the world there are different type of companies that work with an aim to
deliver high quality services and products. For all these aspects there are many
considerations that are required to be made so that customers can be satisfied
(Hanushek, Schwerdt and Woessmann, 2015). In this context, one of the main focus
that is required to be made is from the side of employees. There is various type of
activities that are followed so that organizational goals and objectives can be attained.
For each of the activities, workers are required so that they are able to support the firm
to grow. When employees fail to perform their set of roles in effective manner, it has
negative impact over the business. There are certain set of expectations that employees
when performing any type of roles (Gindling and Terrell, 2010). When these are not
fulfilled, then it negatively affects the growth of the business.
Motivation plays vital role to make workers perform with their full efficiency.
Further, it consists of wages for each day and when this is attained, then it boosts up
the moral of individuals towards work. Wages are considered to be monetary
compensation that is paid by employer to workers for the exchange of work done
(Buehn and Schneider, 2012). The total amount is calculated as fixed amount for each
of the task completed or at the hourly daily rate or by measuring the quantity of work
done. In perspective of companies wages are considered to be expenses through which
business operations are carried out. The rate of wages that are provided to people at
different countries differs. In this context, minimum wage can be determined as lowest
remuneration that workers can legally pay to their employees. Further, this is the price
1

floor on which employees can not sell their labour. However, there are many
jurisdictions in which minimum wage is imposed but due to difference in opinion there
exist about drawbacks and benefits of minimum wage (Edmans, Li and Zhang, 2014).
People who support the minimum wages state that with the help of minimum wages, it
can increase the standard of living for employees, reduces inequality, boosts morale
and reduces poverty. On the other hand, there are people who state that this increases
the rate of unemployment, increase poverty, damage business, etc.
For companies, when there are minimum wages set, then it is required to raise
their total expense so that the requirements can be met. Further, to get to amount,
ultimately they increase the price of products so that wages to employees can be
provided (Eichhorst, Rodríguez-Planas and Zimmermann, 2012). From this, it can be
stated that the condition faced has both positive and negative impact on workers and
business. There are countries who provide workers with minimum wages and this is
helpful for these workers in order to live a standard life. Modern national law enforced
union membership that enabled to prescribe minimum wages to workers and it was first
passed in Australia and New Zealand in the year 1890s. Further, there was a movement
that was first formed in order which motivated ways to stop exploitation of employees in
sweatshops by employers who have unfair bargaining power over them. With time, the
concepts of minimum wages were implement so that families with lower income families
can be supported (Dube, Lester and Reich, 2010). This way, by the end of 20 th century,
minimum wages were introduced in most of the countries. In other conduct the research
in effective manner, below given are the aim and objectives of this research. These are
2

developed so that systematic structure can be developed with the help of which these
can be attained. With this respect, below given are the aim and objectives:
Aim: What are minimum wages around the world? Should The Universal Declaration of
Human Rights control them?
Objectives:
 To understand the concept of minimum wages
 To determine the opinion given by different countries for wages.
 To consider the positive and negative impact of wages to people.
 To analyse the role of Human Rights to control wages of workers.
Research Questions:
 What is the concept of minimum wages
 What is the opinion given by different countries for wages?
 What is the positive and negative impact of wages to people?
 What are the roles of Human Rights to control wages of workers?
3

CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
As per this chapter, there are different types of researches that are carried out on
similar topic. These are helpful enough to develop in depth understanding and
knowledge. Information from the side of secondary sources that are analysed and used
for conducting the research on minimum wages to workers. The types of policies that
are followed by countries are different and the type of perception carried by each one
also differs.
2.2 Concept of minimum wages
According to Arulampalam, Devereux and Maffini, (2012) the origin of minimum
wage was originated from Ordinance of Labourers in the year 1349. As per King
Edward III developed the law in which employees were provided with maximum wage in
medieval England. When this was applied, then it helped in boosting up moral of
workers and they focused on putting all their efforts in supporting the firm (Frankel,
Parsley and Wei, 2012).
In 19th century, there was significant labour unrest due to which many got
affected with industrial nations. It was in the year 1890s when first modern legislation
attempts with an aim to regulate minimum wages were introduced in Australia and New
Zealand. Government recognition of union was the first to enact national minimum
wages and this was helpful enough to develop many wage related policies, at UK it was
introduced in the year 1909 (Chan and Pun, 2010). In 1938, US informed first statutory
minimum wages and these were done so that proper support can be provided to
4

workers. In European Union, out of 28 countries there are 22 who have adopted
minimum wages. Countries like Italy, Austria, Switzerland, Denmark, Finland and
Sweden do not follow minimum wage laws.
Further, there are supply and demand model states that when there is an
increase in minimum wage, increases the rates of wage for unskilled workers above the
level and this is established through market forces (Dreher and Schneider, 2010). This
way, it can be stated that the rate of support from the side of government is required to
be high so that these type of policies can be implemented.
2.3 Determine the opinion given by different countries for wages
There are different considerations made in order to determine minimum wage.
With this respect, it includes factors like prevailing wage rates focused by Labour Force
Survey and socio economic indicators that are helpful to better workers protection
(Dabla-Norris, Kochhar and Tsounta, 2015). Above and over rates for minimum wage is
determined by productivity based pay that is helpful for employees and firm to become
more productive and competitive by rewarding workers supplementary pat based on
quality of the type of performance that were done by them. Apart from this, for setting up
mandatory minimum wage, there are different aspects that are considered which the
requirement of employees and their families. More specifically, it consists of cost of
living and changes in therein, improvement in the living standards, demand for living
wage, etc. (Lee and McCann, 2011). Further, consideration is made for capacity of pay
that is made. With this respect, it includes productivity that is contributed by workers, fair
return on capital investment of workers.
5

In US, the local, federal and state government make sure that workers are
provided with highest minimum wage. The rate of wage is provided to employees based
on hour system. Workers are provided with $11.50 per hour as their highest state of
minimum wage. This rate was decided in the year 2009 (Wimo, Jönsson and Winblad,
2013). Further, employers can also provide workers with tipped labour. For minors, that
is individuals who are below the rate of 20 are provided with lower minimum wage.
In the year 1998, National Minimum Wage Act was developed for minimum wage
across UK. Individuals who were below the age of 20 were provided with £5.60 per
hour, below the age of 24 people are given with £7.05 and for individuals above 25 and
given £7.50.
Since 1948, minimum wages are there in India (Bederson and Quinn, 2011). This
policy was developed considering by Indian labour law. The government of this country
aims at delivering each one with the basic standards for living that includes digit,
comfort, education, good health, etc.
2.4 Positive and negative impact of wages to people
Various type of effects is faced by minimum wages. With this respect, it has both
positive and negative impact. Some of them are as follows:
Job hunt motivation: When there is no minimum wage, then low skilled workers
would not have any type of job hunting (Rani, Belser and Ranjbar, 2013). The rate of
efforts from the job hunting can be offset when the low wage and this will be highly
beneficial for low skilled workers to remain on public. With the help of this minimum
wage, people can easily calculate income that is generated by a job. This way, the rate
of tax burden gets reduced and makes people off of public assistance.
6

Single parents: In the year 2000, a study was published by Economic Policy
institute stated that 10.2% of people who were making minimum wages were single
parents. Another study stated that 6.1% who were making minimum wages were single
parents. For people who are unskilled, it is will be difficult for single parents to support
their families (Lavoie and Stockhammer, 2013). These type of wages provide families
chance of survival.
Moral: When a state decides on raising the minimum wage, then the affects all
the employees in any company. Workers who work just above the minimum wage will
get discouraged when the wage rates are raised (Mitchell and Muysken, 2010). On the
other hand, companies face issues are they have to pay it to workers as per their
performance.
2.5 Role of Human Rights to control wages of workers
Cahuc, Carcillo and Zimmermann, (2013) stated that more than 20000 people
joined the march at Washington in the year 1963 for freedom and jobs. The march was
also focused on making the minimum wage to be $2 per hour. All these were done so
that the living condition of people can be improved (Comola and De Mello, 2011).
Without economic justice, civil rights leaders of the day appreciated that civil right can
not be enjoyed.
By raising the wage rate is considered to be the key to achieve human and civil
rights. In the year 2014 there were March that took place by fast food workers in 150
cities (Litman, Robinson and Rosenzweig, 2015). As per the human right, it is important
7

for workers to be provided with the opportunity to get proper wage and this should be
considered as per the type of performance that were made by them.
In this context, it is the responsibility of individuals to make sure that they are
able to consider the rate of aspects is effective manner, so that they are able to perform
their roles. When the minimum wages provided to workers is low, then they fail to fulfil
even their basic requirements (Hepburn and Simon, 2013). In this context, it is important
for the government to support individual in order to make grow in positive direction.
8

CHAPTER 3: METHODOLOGY
3.1 Introduction
This is an important chapter that enable to provide information in relation with the
structure that is to be followed with the help of which the research can be carried out in
effective manner. It includes research methodologies like research approach, data
analysis and findings, data collection and ethical consideration.
3.2 Research approach
These enables to determine the procedure that is undertaken to conduct the
study. This is of two types which are inductive and deductive. Inductive approach is
considered to be the method that provides specific information and then general data is
presented (Taylor, Bogdan and DeVault, 2015). On the other hand, deductive approach
is the type of method that makes information to be presented from general to specific. In
this, the researcher has used deductive approach in which the information presented
first the general aspect and then specific information is conveyed.
3.3 Data collection
Information need to be gathered so that in depth understanding can be raised.
There are two ways with the help of which information can be gathered. With this
respect, it includes primary and secondary methods. Both these have their own set of
benefits and disadvantages. Primary is considered to be the data which is gathered for
the first time (Lewis, 2015). On the other hand, secondary method is those which are
gathered from the research that are already carried by other researchers. For the
present study, the researcher has made use of secondary data. This way, consideration
is made for identifying the information and developing an adequate research in which in
9