"The property that people have in their own labour is the foundation of all other property. It is the most sacred and inviolable of property rights. The patrimony of a poor man lies in the strength and dexterity of his hands. Thus, preventing him from working at any job he thinks fit without injury to his neighbours plainly violates this most sacred property." (Adam Smith, The Wealth of Nations: a Translation into Modern English)
Around the world, minimum wage controls have excluded low-cost competitors from labour markets, hampered firms in reducing wage costs during trade downturns and caused various industrial-economic inefficiencies as well as unemployment, poverty and price rises.
This study analyses national minimum wage fixing as a special form of political-economic protectionism - the equivalent of tariff barriers to low-cost goods imports.
The book contains a detailed critique of the UK national minimum wage fixing regime.
Coverage:
1. Minimum wage controls and their effects
Economic and political motives for minimum wage control* The general case against* Unemployment effects* minimum wage-fixing as a form of protectionism and discrimination* Minimum wage, maximum wage ("incomes policy"), and other forms of price control* Negative income and welfare effects*
2. Minimum wage controls in particular countries
Comparative wage and labour market freedom in Britain* Trade union attitudes towards state wage-fixing* Minimum wage controls and their effects in the US and Europe* Defining "pay" and other technical-administrative issues*
3. Legal aspects of minimum wage control
Legal, constitutional and rights issues* Avoidance and evasion* Challenging official wage-fixing and job losses in the courts*
4. Minimum wage control and unemployment
How minimum wages cause unemployment* International studies* Recent research findings and forecasts*
5. Effects on employers and labour demand
Economics of labour demand* Firms and industries most affected by statutory wage controls* Employers' responses - from job redundancies and out-sourcing to changes in working practices, hours, and payment methods*
6. Effects on employees and labour supply
Economics of labour supply* Employees most affected by wage control: occupational, skill, age, race, sex, and regional variables*
7. The effects on incomes and welfare
The case against using wage controls for income redistribution purposes* Employment subsidies, tax cuts, and welfare payments as an alternative* Productivity, supply and demand and other real industrial-economic causes of wage differentials* Summary and conclusions*
