Impact of Minimum Wage on Industrial Exports in Jordan

Authors

  • PhD in Business Economics, Ministry of Industry, Trade and Supply (MoITS), Amman, Jordan
  • Nahil Saqfalhait Professor, The University of Jordan, Business College, Business Economics Department, Amman, Jordan

Keywords:

Minimum Wage, Industrial Exports, Jordan

Abstract

The aim of this study is to measure the effect of the minimum wage on industrial exports by using panel data for the period 1999-2016. The study finds that industrial exports is determined by a combination of factors, the minimum wage not one of them, and thus increasing the level of the current minimum wage to higher levels does not affect industrial exports in Jordan. The study concluded that the minimum wage level must be revised as long as it does not cover the worker's basic needs of food and housing, thus raising the level of the current minimum wage to higher levels that can achieve many advantages Thus, raising the minimum wage represents a step towards reforming the market for Jordanians, and increase their demand for unwanted jobs.

References

AbuSal, Rawan (2006). The Effect of the Minimum Wage on the Industrial Sector. Master's Thesis, Yarmouk University, Irbid.

Boylanet, A. (1980). The Functional Form of the Aggregate Demand Equation. Journal of International Economics, 10: 561-566.

Central Bank of Jordan. Statistical Database and Annual Reports. https://www.cbj.gov.jo/

Department of Statistics (1999-2016). Annual Statistical Reports. Amman, Jordan.

Department of Statistics (2016). Industrial Survey Report. Amman, Jordan.

Department of Statistics (2016). Survey Report of Employment and Unemployment. Amman, Jordan.

Ehrenberg, R., & Smith, R. (2012). Modern Labor Economics: Theory and public policy, 11ed edition. Cornell University, prentice hall.

Falah, Bilal (2014). Assessment of Compliance with the Minimum Wage System in the Northern Governorates. Economic Policy Research Institute, (MAS), Ramallah, Palestine

Hatch, John (1998). The Case Against the Minimum Wage: Poverty Assessment by Microfinance Institutions, A Review of Current Practice. Finca International Project of USAID.

International labor organization (2012), Giving Globalization a Human Face, General Survey on the Fundamental Conventions Concerning Rights at Work in Light of the ILO Declaration on Social Justice for a Fair Globalization. Geneva. Available at: https://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_174846.pdf

International labor organization (1983). Arab Conventions of the Arab Labor Organization. The eleventh session, Arab Labor Office.

International labor organization (2006). Conditions of Work and Employment Program Social Protection Sector: Minimum Wages Policy. Geneva.

International labor organization (2014). Enhanced Capabilities Organizations Economic, Social and Legality. Minimum Wages are a Development Tool: a Workers' Approach.

Kaitz, Hyman (1970), Experience of the Past: The National Minimum in Youth, Unemployment and Minimum Wages, Department of Labor, Bureau of labor statistics, Washington, USA.

Kardoosh, Marwan (2001). Minimum Wages in Jordan Social Necessity or Economic Burden. Royal Scientific Society (RSS), Jordan.

Liton, M.; Akhter, R., & Hasan, S. (2018). Impact of Minimum Wage on Employment and Exports in Readymade Garments in Bangladesh. Research on Humanities and Social Sciences, 8 (9): 18-23.

Meer, Jonathan (2018.( The Minimum Wage: Implications for Missouri. Missouri Policy Journal, 7: 1-11.

Meer, Jonathan, & West, Jeremy (2013). Effects of the Minimum Wage on Employment Dynamics. Texas A&M University, USA.

Montenegro, C., & Senhadji, A. (1998). Time Series Analysis of Export Demand Equations: Across-Country Analysis. IMF Working Paper, No. WP/98/149.

Neumark, David, & Wascher, William (2013). Revisiting the Minimum Wage-Employment Debate. NBER Working Paper No. 18681.

Obeng, Samuel Kwabena (2015). An Empirical Analysis of the Relationship between Minimum Wage, Investment and Economic Growth in Ghan. African Journal of Economic Review, 3: 85-101.

Sabia, Joseph (2015). Minimum Wages and Gross Domestic Product. Contemporary Economic Policy, 33 ( 4 ): 587-605.

Saghaian, S., & Soltani, M. (2012). Export Demand Function Estimation for U. S . Raisins. Selected Paper for the Southern Agricultural Economics Association, Annual Meeting, Birmingham, U.K.

Sapsford, D. and Tzannatos, Z. (1993). The Economics of the Labour Market and Wage Gains of Minimum-Wage Entrants. Social Science, Macmillan, London.

Senhadji, A., & Montenegro, C. (1998). Time Series Analysis of Export Demand Equations: Across-Country Analysis. IMF Working Paper, No. WP/98/149.

Stewart, Mark (2004). The Employment Effects of the National Minimum Wage. The Economic Journal, 114 (494): 110-116.

Tabachnick, G& Fidell, S. (2007), Using Multivariate Statistics. 5th ed. Boston, MA: Allyn and Bacon

Downloads

Published

2022-07-24

How to Cite

Al-khatib , A. A. ., & Saqfalhait , N. . (2022). Impact of Minimum Wage on Industrial Exports in Jordan. Jordan Journal of Economic Sciences, 9(1), 53–69. Retrieved from http://jjournals.ju.edu.jo/index.php/jjes/article/view/247

Issue

Section

Articles