Impact of National Minimum Wage on Low Income Workers in Calabar Municipality, Nigeria

Abstract

The study examined the impact of the National Minimum wage on the socio-economic characteristics of low income workers in Calabar Municipal Council Area of Cross River State, Nigeria. Ex post facto research design was adopted for the study. A random sample was conducted to select 305 respondents across government ministries, departments, agencies and parastatals. The study utilized two theoretical frameworks: Relative Deprivation Theory and Public Interest Theory. The major instrument of data collection was questionnaire structured to reflect Likert Scale with 25 items.  Data collated were analysed using mean statistics. Hypotheses test statistics was Pearson Product Moment Correlation coefficient. The results show that The National Minimum Wage has not significantly impacted on poverty, employment, income stability and saving of low-wage earners in the public sector. The results provide empirical evidence to support theoretical expectations and existing research findings in socio-economic literature. Based on the findings, it was recommended that public–private partnership should formulate policies and programmes to alleviate the burden of poverty among the citizens for the betterment of the society.

Keywords: national minimum wage, low in workers, wages, savings, poverty.