One of the policies that the #workersparty is advancing this #ge2020sg is the policy of a minimum wage. Many who are unfamiliar with this concept—or who only encounter this idea in intro econ texts—tend to reject it as an unnecessary gov intervention that would raise unemployment 
I used to think that way. But since the work of Card-Krueger in the 1990s, economists’ understanding of the effects have evolved. Using modern econometrics, paper after paper has shown little to no employment losses from the intro of min wages & improvements in worker welfare
Of course, it would be absurd to argue that capacity to raise wages above prevailing levels is boundless. But real wage growth in Singapore over the past decade (1.9%) was outrun by real GDP growth over the same period (4.5%), meaning that there is slack for greater labor share
Singapore’s workers only receive 43 cents of every dollar of natl income, compared to 55 cents in Japan & 52 cents in France/Canada. Even compared to other NIEs, our labor share falls short. This suggests that a min wage policy is unlikely to be inflationary or raise unemployment
Just to be clear: a national min wage will not immediately alter or may even have limited longarun effects on wage share (other complementary policies needed). But it is an impt step forward in both equity and improving national welfare (with a Benthamite social welfare function)
Practically, one way to ensure that min wage increases don’t end up following the experience of Latin America in the 1980s (when indexed wages led to wage-cost spirals) is to form an independent natl wage board that reviews periodic increases in wages, staffed by professionals
We believe the time is ripe for a minimum wage for Singapore. Resistance to such a policy is based on outdated ideas and is not supported by evidence, while imposing significant social costs. We can do better #makeyourvotecount #workersparty
