Impact of Minimum Wage on Industrial Exports in Jordan
Keywords:
Minimum Wage, Industrial Exports, JordanAbstract
Objectives: The aim of this study is to measure the effect of the minimum wage on industrial exports using panel data for the period from 1999 to 2016.
Methods: This study used panel data from 1999 to 2016 to estimate three econometric models. The multiple linear regression method was employed, considering key economic variables that influence industrial exports, with the exchange rate and gross domestic product being the most significant.
Results: The study found that industrial exports are influenced by several factors, but the minimum wage was not one of them. Consequently, raising the current minimum wage to higher levels does not affect industrial exports in Jordan.
Conclusions: The study concluded that it is necessary to reconsider the minimum wage, as it does not currently meet workers' basic needs for food and housing. It also recommended raising the minimum wage to reform the labor market among Jordanians and increase their demand for employment in less desirable professions, without negatively impacting industrial exports.
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