Wages and inflation. It’s complicated. What might a 5.1 percent increase to the minimum wage have on the Australian economy?

Currently the cost of living is increasing rapidly. In its election campaign the Australian Labor Party proposed that employees on the minimum wage should get a 5.1 percent wage rise. The Coalition countered that such a move would cause greater inflation. What about the Greens?

Who are Australia’s minimum wage workers? Source: Source: H Dragon/Creative Commons

Riandy Laksono is a PhD candidate in the Arndt Corden Department of Economics at the ANU He explains to Sri Dean that assessing the impact a wage increase will have on the economy is more complicated than was once believed.

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What can be done to help low-paid and under-paid workers in Australia cope with the growing cost of living? Source: Source: Lukas Coch/AAP PHOTOS