The Continuing Irrelevance of Minimum Wages to Future Inflation
Updated analysis by the by the Centre for Future Work at the Australia Institute reveals that a just increase to the minimum wage, and accompanying increases to award rates, would not have a significant effect on inflation. The analysis examines the correlation between minimum wage increases and inflation going back to 1990, and finds no consistent link between minimum wage increases and inflation. It also reveals that such an increase to award wages could be met with only a small reduction in profit margins.
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