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Most political representatives and academics still find themselves being trapped over the

virtues and endowments of the national minimum wage, the critical emphasis being placed on

the inconsistencies that bedevil job creation through the implication of this mechanism

(Benjamin, 2014) !he current ruling part" (#$%) pledged to ma&e an anal"sis on the

modalit" of the general idea behind the national minimum wage as a vital utensil to reduce

income ine'ualit" in their election manifesto (Marrian, 2014) %onversel", some researchers

caution against this mechanism, substantiating the ris& attached which is tarnishing sectorial

industries and emplo"ment creation

erceiving the measure of income ine'ualit" proportionate to the countr"*s population (+ini

coefficient), outh #frica is comprehended as one of the most une'ual countries in the world

with a +ini-coefficient which currentl" stands at- - .n lessening the gap that e/ist between

high income earners and low income earners, the minimum wage mechanism can be

scrutinied as being one of the fundamental step to e'ualit" owever, there are merits and

cons attached !his essa" will be centered on the impact of national minimum wage on

emplo"ment prospects followed b" the conse'uences of this mechanism on ine'ualit" as

measured b" the +ini-coefficient .n dominance economic theor" will be used to accomplish

solid enough grounds to demonstrate the concentration

etermining the minimum wage ma" conse'uentl" turn into being an obstruction between

what the government ma" propose against the proposal set b" the sectorial industries tanlib

economist 3evin ings argues that the jeopard" with attempting to introduce the national

minimum wage is the scale that will be used, emphasiing his findings based on the variation

of sectorial minimum wages (Benjamin, 2014) !his ma" in addition encumber the

availabilit" of emplo"ment prospects in the econom", which ma" be highlighted as a

drawbac&

rofessor aoroon and Benjamin tanwi/ found that bringing the minimum wage wits in the

agricultural sector in the "ear 2005 stemmed 22000 emplo"ees wounded, however the merits

of this mechanism was an increase in wages for the remaining emplo"ees 6eviewing the

scholar*s findings, it is legit to highlight that unemplo"ment retaliated the introduction of the

minimum wage mechanism b" substantivel" impacting emplo"ment Moreover, some

academics appro/imate that, a 1 7 increase in wages can be related to a substantial increase

of 087 increase in unemplo"ment rate

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!he impact of losses due to national minimum wage can supplemented with the theor"

reinforced b" the neoclassical school of thoughts

#non, (2019) :online; #vailable at