The Reserve Bank of Australia (RBA) has released research suggesting that an increase in the minimum wage will not result in job cuts or a reduction in hours worked. The RBA’s economic research department found that people who received a higher award wage increase between 1998 and 2008 generally had a larger increase in their working hours than their peers who received a smaller award wage increase. These results come as the ACTU pushes for the minimum wage to be increased by $50 a week.
Below are key extracts from the RBA’s paper:
