The minimum wage policy has a negative and positive effects on the Philippine economy.
Based on the study that was made by Leonardo Lanzona, Jr., one of the negative effects is it reduces employment.
"Workers carry part of the burden of higher minimum wages in the form of lower benefits and reduced worker security. Both of these effects may result in greater incidence of unemployment or lower participation in the formal sector."
Since unemployment rate increases, the poverty rate would also escalate. Many families will be affected, especially those who are less educated. They will not be able to
On the other hand, the minimum wage policy will benefit the low - skilled workers to remain on public assistance.
According to the study, "Poorer and less experienced workers who are in need of immediate cash will probably accept the offer of smaller firms, instead of taking a chance with larger firms."
Minimum wage harbors a lot of workers but still we can't see any progress in our country. It provides numerous jobs but still not enough to supply the needs of the people.
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