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Minimum wage debates in a developing country setting: Evidence from Papua New Guinea

Published online by Cambridge University Press:  01 January 2023

Benedict Imbun
Benedict Imbun*
Affiliation:
University of Western Sydney, Australia
*
Benedict Imbun, Employment Relations, University of Western Sydney, Locked Bag 1797, Penrith, NSW 2751, Australia. Email: b.imbun@uws.edu.au
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Abstract

Contributing to the broader topic of minimum wage determination in developing countries, this article discusses the shaping and implementation of minimum wage policy in Papua New Guinea (PNG). It begins by outlining the institutional arrangements under which minimum wage rates are determined in PNG. It then critically examines the argument that wage levels in the country are unsustainably high – a claim that has perennially characterised Papua New Guinea (PNG) minimum wage fixing. The article argues that, on the contrary, wage levels are indeed low and not adequate to reasonably support a single worker, let alone a family in an urban setting. This counter-argument is discussed in the context of debates over minimum wage levels and their relationship to economic growth, employment creation, international competitiveness, and capacity to pay. Whilst focusing on the PNG wage fixing system, the article thus sheds light on the dilemmas and challenges facing wages policy generally in a developing country setting.

Keywords

J3Central wage fixingdeveloping countryminimum wageminimum wages boardPapua New GuineaPNG
Type
Articles
Information
The Economic and Labour Relations Review , Volume 26 , Issue 1 , March 2015 , pp. 137 - 153
Copyright
Copyright © The Author(s) 2015

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