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Answer to Question #94207 in Microeconomics for malebo
Question #94207
In 2002 the South African government introduced the minimum wage for domestic workers. With effect
from the 1st of January 2019 it has been revised to R15 per hour with the exception of workers working
fewer hours in certain areas.
https://www.parent24.com/Family/Finance_Legal/What-is-the-minimum-wage-for-domestic-workersand-nannies-20150826 Accessed: 24/02/2019
With the aid of a diagram, discuss the welfare effects of such a policy if the wage rate set is above the
market clearing wage rate (assuming this is R12 per hour).
from the 1st of January 2019 it has been revised to R15 per hour with the exception of workers working
fewer hours in certain areas.
https://www.parent24.com/Family/Finance_Legal/What-is-the-minimum-wage-for-domestic-workersand-nannies-20150826 Accessed: 24/02/2019
With the aid of a diagram, discuss the welfare effects of such a policy if the wage rate set is above the
market clearing wage rate (assuming this is R12 per hour).
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