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Dynamics of Savings and Minimum Wage in Nigeria
Current Issue
Volume 5, 2017
Issue 6 (December)
Pages: 74-79   |   Vol. 5, No. 6, December 2017   |   Follow on         
Paper in PDF Downloads: 75   Since Oct. 25, 2017 Views: 589   Since Oct. 25, 2017
Authors
[1]
Ayodeji Seun Asubiojo, Department of Economics, Obafemi Awolowo University (OAU) and Science Policy Research and Innovation Studies (SPIS), National Centre for Technology Management (NACETEM), Obafemi Awolowo University (OAU), Ile-Ife, Nigeria.
[2]
Moses Clinton Ekperiware, Department of Economics, Obafemi Awolowo University (OAU) and Science Policy Research and Innovation Studies (SPIS), National Centre for Technology Management (NACETEM), Obafemi Awolowo University (OAU), Ile-Ife, Nigeria.
Abstract
The study examined and appraised effects of minimum wage on savings in Nigeria. These were with a view to determining the long-run relationship minimum wage and savings in respect to minimum wage legislations in Nigeria, 1980 to 2016. Secondary data were used for the study. Annual data on minimum wage, savings, per capita income, interest rate and inflation were sourced from Central Bank of Nigeria Statistical Bulletin, 2016 edition. An econometrics technique of Autoregressive Distributed Lag (ARDL) was adopted for this study. The result showed that wage legislation has appositive and significant effect on savings in the long-run (t= 2.997987, p<0.0071). This was supported by bound test result indicating that there is long-run relationship between the dependent variable and independent variables. The study concluded that minimum wage legislation has a significant positive effect on both savings in the long-run.
Keywords
Saving, Debt, Economic Growth and Minimum Wage
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