Tuesday, 28 June 2011

Transitional wages

I had a chat on Monday with Mike Williams from Newstalk ZB about the abolition of the youth minimum wage. The audio's here, starting around the 35 minute mark.

We didn't get beyond the effects of the prior legislative changes. And that may have been for the best since any potential changes coming from National remain pretty amorphous: rumour without confirmation or denial. Rumour has it they'll offer a transitional wage arrangement in which young workers on the unemployment benefit would be eligible for a lower minimum wage to help them ease back into work. I hope that they've thought through how these kinds of regulations would work. I can imagine perverse incentives built into the regime, but we'd need more than rumour to start working through the effects.

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