Assessing the need for minimum wage enforcement in the Maltese labour market

Abstract

The thesis "Assessing the Need for minimum wage enforcement in the Maltese Labour Market" is aimed at weighing the costs and benefits of the minimum wage in a practical manner. The inspiration for this thesis is derived from the limited empirical proof that should back up the ample agreement between economists regarding the theoretical eff eels of imposing a minimum. Four main chapters form the backbone of this study. Chapter three concerns the different, theoretical models explaining the effects of the minimum, chapter four views the employment effects on the local labour market, chapter five looks at the matter from a social perspective gauging the minimum's redistributive effects whilst chapter six attempts to sum up all conclusions and suggest appropriate and realistic policy prescriptions. The study concludes that the minimum can, in most cases, do more good than harm, however the decreasing importance of the minimum wage and the rigidity of its structure are of concern. Although the minimum should not be removed, making the minimum wage structure more flexible will allow more people to benefit and adverse effects would be restricted. Conclusions rely mainly on official statistical data, international publications and articles and a tailor-made survey conducted locally by the author in order to get realistic figures and opinions from different sectors of the economy.