AN EMPIRICAL EVALUATION OF THE RELATIONSHIP BETWEEN INCREASED MINIMUM WAGE AND EMPLOYEE PRODUCTIVITY (A CASE STUDY OF MINISTRY OF INFORMATION AND STRATEGY, AKWA IBOM STATE)

ABSTRACT

This paper aims to investigate an empirical evaluation of the relationship between increased minimum wage and employee productivity (A case study of Ministry of information and Strategy, Akwa Ibom State).

Data used for the study will be gotten from respondents from Ministry of information and Strategy, Akwa Ibom State. The study is delimited to increased minimum wage and employee productivity.

As a result of the inability of the researcher to effectively study the whole population strength, a representative number was chosen as the sample size population. 90 respondents was used as the sample size. Data was collected from primary and secondary sources. Primary data was obtained through questionnaire and personal interviews with the respondents. Tables and simple percentage was used as technique of analyzing the research questions.

Findings from the study revealed that there is a significant relationship between increased minimum wage and employee productivity.

Labor market regulations that serve as barriers to workers and reduce the quality of matches between workers and jobs should be removed. And policymakers should have confidence that measures to increase the productivity of workers will translate into higher pay.

Contents

CHAPTER ONE. 2

INTRODUCTION.. 2

1.1 BACKGROUND OF THE STUDY. 2

1.2 Problem of the study. 4

1.3 Objectives of the study. 4

1.4 Research Questions. 5

1.5 Research hypotheses. 5

1.6 Significance of the study. 5

1.7 Scope of the Study. 6

1.8        Limitation of the study. 6

CHAPTER TWO.. 7

LITERATURE REVIEW... 7

2.1 INTRODUCTION.. 7

2.2 Mechanisms can increase overall economy wide productivity. 8

2.3 Effect of increased minimum wage. 11

2.4 BASIC MINIMUM WAGE PRINCIPLES. 13

2.5 Relationship between Wages and Productivity. 14

CHAPTER THREE. 16

Methodology. 16

3.1        Research Design. 16

3.2     The Study Area. 17

3.3    Population of the Study. 17

3.4        Sample Size and Sampling Techniques. 17

3.5 Sources of Data Collection. 17

3.6 Instrument for Data Collection. 17

3.7        Validity of Research Instrument 18

3.8        Reliability of the Instrument 18

3.9        Administration of the Instrument 18

3.10 Methods of Data Analysis. 19

References. 19

CHAPTER FOUR. 20

DATA ANALYSIS AND INTERPRETATION.. 20

Preamble. 20

4.2 Demographic Characteristics of Respondents. 20

4.3 Analysis of the Respondents’ Views on Research Question one: 21

4.4        Testing Hypotheses. 24

4.5        Summary of Findings. 25

CHAPTER FIVE. 26

SUMMARY, CONCLUSION AND RECOMMENDATIONS. 26

5.1        Preamble. 26

Summary. 26

Conclusion. 26

Recommendations. 27

References. 28

Appendix 1. 29