Corresponding Author's : Adeniwura Oluwatoba

Co-Author's : Rahmon Folami, Adegboye Adebayo, Adelowokan Oluwaseyi Adedayo

Abstract :

This study examines the impact of the minimum wage on income inequality in Nigeria (2011 to 2022). The study specifically analyse the effect of minimum wage rate on income inequality in Nigeria; estimate effect of urban population growth on income inequality in Nigeria; explore impact of economic growth on income inequality in Nigeria. The data was sourced from the Nigerian Living Standard Survey (NLSS), ILOSTAT and World Development Indicators. The data was analysed using estimation technique (descriptive statistics and multiple regressions). The regression analysis showed increased wages reduces inequality in Nigeria. This study also suggests that the increased wages’ effect is stronger in urban areas than in rural areas. The study suggest that government should increase wages in the urban area where the imact is stronger on income inequality. Also, implementation of the minimum wage policy should be accompanied by other policies that aim to address income inequality comprehensively.

Keywords :

Minimum wage, Wage policy, Income inequality, Urban population, OLS regression

Article Details

Unique Paper ID: 92

Publication Volume & Issue: VOLUME 3 - 2023 , ISSUE 4

Page(s): 36-40

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