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Salaire Research Essay Reference [2]

论文作者:留学生论文论文属性:课程作业 Coursework登出时间:2010-08-26编辑:vshellyn点击率:4072

论文字数:2000论文编号:org201008262022416122语种:英语 English地区:中国价格:免费论文

关键词:SalaireResearch EssayReference

and worth their pay. Economics professor Francis Lui Ting-ming of the University of Science and Technology said the full impact of a minimum wage on employment would take some time to emerge, and the effect on productivity would be less apparent. "Those who were not laid off would have to share the workload," he said.

Lui said companies might increase mechanisation or automation in response to an increase in labour costs due to the minimum wage. The professor also surmised that as the economy continued to improve, the impact of a statutory minimum wage might not be too great; and for a minimum wage of around HK$4,000 to HK$4,500, the impact on the economy and unemployment would be small. But he warned that raising the minimum wage to more than HK$5,000 a month would begin to cause damage. The problem would be more political if it resulted in long-term unemployment for individuals, not just in the economic impact, but also because it would affect individuals psychologically, he said. Professor Ho Lok-sang of Lingnan University said calculations looking at just the negative impact of a minimum wage oversimplified the situation. "The secondary effect should be taken into account," he said. Ho explained that once a statutory minimum wage came into force, some employees might receive a higher income. As a result, they might spend more and the increase in demand spurred by consumption might drive employment. Every HK$1,000 increase in the monthly minimum wage would not give rise to the same number of jobs lost, he said. It would depend on how much the economy could tolerate and on people's spending behaviour. The professor suggested the commission should start with a relatively low minimum wage and increase it gradually, testing the tolerance of the economy along the way. "If the social benefits outweigh the social cost, then we should increase the minimum wage level, otherwise, it should stop there," he said. 

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