A Study on Inflation and Minimum Wage Act: A Multi-Dimensional Approach
Author : Akshaya P and Dr. MD Chinnu
Abstract :
This study explores the often-debated connection between the implementation of the Minimum Wages Act and rising inflation in an economy. It aims to understand whether increasing the statutory minimum wage actually leads to higher overall prices or whether its impact on inflation is minimal, as some studies suggest. To do this, the research examines existing data such as past wage levels, consumer price index (CPI), employment trends, and GDP growth over a specific time period. By applying quantitative techniques like multiple linear regression analysis, the study looks for patterns and relationships between wage changes and price movements. Ultimately, it seeks to provide a clearer and more practical understanding of how minimum wage policies influence economic stability and everyday living costs.
Keywords :
Inflation, Wage-Price Spiral, Purchasing Power, Employment Rates, Labour Economics, Economic Policy, Price Level, Cost-Push Inflation.
