Effects of the minimum wage policy on employment in the retail sector : Lusaka province.
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Date
2023
Authors
: Mufungo, Willis
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
The purpose of this study was to investigate the effects of the minimum wage policy on employment in the retail sector particularly in Lusaka Province. Structural questionaires & interviews were conducted with a sample of respondents and the data analyzed. The study focussed on the multinational retail sector.
This study presents evidence on the awareness, compliance and effects of the minimum wage policy on employment. The findings show that while the vast majority of workers know that there is a minimum wage in force in Zambia, comparatively few employees know the exact amount of the minimum wage. Interestingly, most sociodemographic determinants, such as sex, age, education, marital status, or form of employment, are barely correlated with this knowledge. However, both aspects of awareness of the minimum wage are found less often among employees in the retail sector, for whom the statutory minimum wage is likely to be of particularly high relevance, than among employees with higher wages. This results of this study indicate that despite the importance, majority of retail workers are less informed on the Minimum Wage Policy. They expressed the need for more sensitization by their employers or government. An important aspect of minimum wages in the developing world particularly in Zambia is the degree of compliance, given the regulatory structures tend to be substantially less developed than those in developed countries. However, in this study it appears the extent of compliance is fairly high among multinational retail companies as all the respondents indicated wage rates that are either within or more than the statutory minimum wage brackets. The study also established effects of the minimum wage policy on employees. The respondents indicated an increase in the wages as one of the effects of the MW policy, while employers highlited a negative effect on profitability.
Description
Thesis of Masters in Business Administration General