Trend Analysis of Consumption, Savings and Debt, Following the Minimum Wage Legislation in Nigeria
Ayodeji Seun Asubiojo, Department of Economics, Obafemi Awolowo University, Ile Ife, Nigeria.
Sunday Idowu Oladeji, Department of Economics, Obafemi Awolowo University, Ile Ife, Nigeria.
Moses Clinton Ekperiware, Department of Economics, Obafemi Awolowo University, Ile Ife, Nigeria.
The study examined and appraised effects of minimum wage on consumption, savings and debt behaviour in Nigeria. These were with a view to determining the relationship among consumption and savings in respect to minimum wage legislations in Nigeria as well as analysing the effect of minimum wage on debt behaviour in Nigeria, 1980 to 2016. Secondary data were used for the study. Annual data on minimum wage, consumption, savings, debt, interest rate and inflation covering the period from 1980 to 2016 were sourced from Central Bank of Nigeria Statistical Bulletin, 2016 edition. Descriptive statistics techniques of analysis were employed. Under descriptive techniques, tables and graphs were adopted. The result from the trends analysis showed upward trending of consumption, savings and debt following the minimum wage legislation in Nigeria. The study concluded that that minimum wage legislation has a positive significant impact on consumption in the long-run. Also minimum wage legislation has a significant positive effect on both savings and debt behaviour in the long-run.
Minimum Wage, Consumption, Savings, Debt Behaviour
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