Small firms hard-hit by minimum wage – study

The government should consider the negative relationship between minimum wages and employment in its labor policy if it is really serious about creating jobs and pursuing inclusive growth, a study from a state think tank has concluded.

In its “Economic Issue of the Day” publication, the Philippine Institute for Development Studies (PIDS) featured a study authored by PIDS research fellow Vicente Paqueo, senior research fellow Aniceto Orbeta, and consultants Lorenzo Lanzona and Dean Dulay that revealed the damaging effects of increases in minimum wages on demand for workers in small firms.