The Impact of Minimum Wages on Economic Growth in Osun State

ABSTRACT

The broad objective of this study is to examine the impact of minimum wages on economic growth in osun state. While specific objective are Examine the impact of percentage change in ratio of minimum wages on per capita income in osun state Assess the effect of increase in minimum wages on gross domestic product (GDP) in Osun state and Investigate the relationship between increase in minimum wages and inflation rate in osun state To achieve this objective the variables used in this study were summarized and analyzed into various components using. Coefficient of multiple determinations”, assisted by the Statistical Package for Social Sciences (SPSS) in order to test the relationship between minimum wages  and economic growth. Base on the finding we concluded that From the foregoing, it could be seen that Nigerian National minimum wage was set below the minimum amount of wage adequate for workers of different levels in Nigeria to survive, hence a gross lack of close relationship between salary and basic needs of life. It has been observed that under remunerated workers can constitute premature mortality, significant under nourishment (especially on children), persistent morbidity and illiteracy, among other problems. With the level of minimum wage in place, it is becoming obvious that we are simply working on symptoms but missing the root cause of the problem of its inadequacy. Poverty in Nigeria ranges from absence of basic amenities like water, hospitals, electricity, good roads, good schools, to absence of security of lives and properties and general hopelessness. Payment of N30,000 minimum wage is hereby faulted as one decision that would not solve the problem of Nigerian workers especially because of inflationary tendency.. Therefore, base on the findings we made recommendation that From the above findings, it is pertinent on the government to prevent negative things that will hinder workers efficiency by being proactive in galvanizing efforts towards improving the working conditions of the workforce and the quantum of man-hours lost any time the organized labour in Nigeria goes on strike is too high. When good environment exists, productivity will be enhanced, fraudulent malpractices in government offices will be curtailed, workers will no longer have divided attention, and the efforts of all will be geared towards attaining the corporate goals of good governance.

TABLE OF CONTENTS

Cover page 

Title 

Declaration………………………………………………………………………………………………………………………………iii

Certification…………………………………………………………………………………………………………………………….iv

Dedication……………………………………………………………………………………………………………………………….v

Acknowledgement………………………………………………………………………………………………………………….iv

Table of Contents………………………………………………………………………………………………………………

Abstract…………………………………………………………………………………………………………………………………

CHAPTER ONE: INTRODUCTION              PAGES

1.1Background of the study 1-3

1.2Statement of the problem  4-5

1.3Research question6

1.4Objective of the study           6

1.5Hypothesis of  the study7

1.6Justification for the study7-10

1.7Scope of the Study8

1.8Operational definition of terms8

CHAPTER TWO: LITERATURE REVIEW

2.1Conceptual Review           9-30

2.1.1      Conceptual Framework31

2.2   Empirical Review32-34

2.3 Theoretical Review 34-40

2.3.1Theoretical Framework 41-42

CHAPTER THREE: METHODOLOGY

3.0    Introduction 43

3.1 Area of Study 43

3.2 Research Design 43

3.3 Population, Sample size and Sampling Techniques 43-44

3.4 Source of Data and Data Collection Method44

3.5 Research Instruments44

3.5.1 Reliability of Instrument and Validity of Instrument 45

3.6 Re-statement of Hypothesis 45

3.7 Method of Data Analysis 45-46

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS 

4.1      Data Presentation and Analysis 47-65

4.2      Test of Hypothesis 66-69

4.3     Discussion of Findings  69

CHAPTER FIVE: SUMMARY, CONCLUSION, AND RECOMMENDATION 

5.1     Summary70

5.2     Conclusion 71

5.3      Recommendations71

5.4       Contribution to Knowledge 72

5.5      Limitation of the Study 72

5.6    Suggestion for Further Study72

           Reference             73-77

          Appendices