The government of Bahrain is deeply committed to a minimum wage for Bahraini citizens, as evidenced by
this article from April 2009:
THE minimum wage ceiling for Bahrainis has risen from BD200 to BD250, Labour Minister Dr Majeed Al Alawi revealed at parliament yesterday. He said several companies had already started the new minimum wage approach, with more to follow.
"There is no Bahraini earning below BD200 and I can guarantee that," he told MPs at their discussion of the Private Sector Law yesterday. "I believe that any salary below that is unacceptable and I challenge anyone to say that Bahrainis are getting below BD200," he said. "Around 17,000 have benefited from the minimum wage system, which we have introduced a few years ago. But more are now benefiting from the new BD250 approach we have started. Bahrainis are in demand in the private sector at present and it is evident as employers are willing to give BD250 as a minimum wage and even BD300 in some cases."
MPs also dropped an added article that calls for the formation of a minimum wage council after the minister told them that it would make it oblige Bahrain to give equal wages to Bahrainis and expatriates.
Comment on parliament's decision from an economic viewpont. Please address two of these questions:
- Why would the government want to increase the minimum wage for Bahrainis?
- Who will benefit from this increase? Who will be harmed?
- What are market solutions the government could use to increase the wage of Bahrainis?
- What would be the implications of a similar law for expatriate workers?
Remember to use economic language, analysis, and evaluation.
