The Economic Effects of Imposing the Minimum Wages for the Employees in the Palestinian Economy

Discussion Committee: 
Prof. Abed Al Fattah Abu-Shokur
Ibrahim Mohamed Abu-Hantash
The study dealt with the theoretical framework for minimum wages study. A clarification for the concept of minimum wages, and the main goals for its imposements were introduced. It discussed the economic impacts resulted from imposing the minimum wages in three cases: -in its simplest form. -in the existence of two sectors (covered and uncovered). -in the different market forms. It broached some, studies that dealt with minimum wages that raised controversy between supporters and opposers of such issue, each trying to prove their argument. The study explored the wages situation in Palestine, and it was approved that there is a variation in lahor wages obtained among the different Palestinian territories on one side, and the different economic sectors on the other. The study tied the two concepts of the existing wage rates and the minimum reached a number of criteria to minimum wages specification such as: unemployment rate in the Palestinian economy, poverty line, currency,the differences ,among the economic sectors in many fields, and the differences among the wage rates in the different areas. It explored the financial loads that might he imposed on the economic sectors resulting from minimum wages implement. lt was clear that there are differences in such financial loads among the different sectors. lt revealed the financial changes that may occur on the established profit levels due to minimum wages implement. The study also dealt with the economic impacts resulted from imposing the minimum wages in Palestine. it pointed out that although the beneficiaries from applying minimum wages will reap its advantages as a result of the increase in the purchasing power, which accordingly will boost the Palestinian economy, there are several risks resulted from imposing the minimum wages such as: decreasing the employment level and the increasing official products and services prices. Finally, the study reached several results such as: the existing of different impacts of imposing the minimum wages among different sectors, it was clear that services sector was the most at affected. The study introduced several recommendations that might contribute towards benefiting from minimum wages imposing, the most important one was regarding the speeding of forming the wage committee and applying, gradually, thr minimum wages in the different economic sectors and areas.
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