The minimum wage rises further
The national minimum wage will rise again in October 2007 by about 3% from £5.35 to £5.52. However, the Work Foundation has warned that the effectiveness of the minimum wage may be at its limits and that further rises in its level may not have the desired impact in terms of addressing inequality. The articles and press release below consider these issues.
Minimum wage up to £5.52 per year BBC News Online (7/3/07)
National minimum wage at the limits of its effectiveness The Work Foundation – press release (6/3/07)
Warning over minimum wage level BBC News Online (6/3/07)
Questions
| 1. | Using diagrams as appropriate, illustrate the likely impact on the UK labour market of the proposed increase in the national minimum wage from October 2007. |
| 2. | Assess the arguments given by the Work Foundation that the minimum wage is reaching the limits of its effectiveness. |
| 3. | Evaluate two methods other than a national minimum wage for reducing levels of both relative and absolute poverty. |