1

Title page:

How A Raise Of The Minimum Wage Level Affects The Low Income Group In HK. What
Is The Optimal Level?

Professor Name:

Student Name:

Institute:
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TABLE OF CONTENT

CHAPTER TITLE PAGE NO.

NO.

1 INTRODUCTION 600

2 REVIEW OF LITERATURE 2500

3 MATERIALS AND METHODS 500

4 RESULTS AND DISCUSSIONS 500

5 SUMMARY AND CONCLUSIONS 900

6 REFERENCES 75-85

APPENDICIES 85-98
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ABSTRACT

Wage is measure as a compensation or remuneration allowed or charged by the worker in

capacity of the work performed the primary data is used define the raise of the minimum wage
level affects the low income group in HK. What is the optimal level? The results and discussion
chapters has provided after analysis of data in the final thesis report. An increase of one Hong
Kong dollar will raise the minimum level of the low income group.
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Chapter 1

Introduction

The labor market environment is changing very rapidly in the world due to competition between
the many companies rapidly increasing day to day. Different factor are affecting the market
because marketer is not well aware of the growing facts and needs of the labor marketing
strategies. Labor market is also affected the by external competitive factors including political,
economics, legal, social, technological before enter in the market we have need to knowledge
about these factors are macro environment and micro environment factors. Political background
is very important to run market operations in the country (Carlson, 2001). Political factor effect
the labor market environment through instability and uncertainty. Economic factor includes the
growth rate, inflation, restrictive policies, gross domestic product, tax laws, consumer earning
index etc. Legal labor laws, Government law & regulations change with passage of the time and
the market situation. Social effects are related to the Behavior, taste, lifestyle, age, consumer
religion, and language. Technological improvements in the modern world have enhanced the
technology, innovation and invention due to which the labor demanded has decreased in a
number of industrial areas. The California was the first region which adopted the policy of
increasing the minimum wage level up to fifteen dollar per hour to increase the income level of
the labor class. But this increase showed that the rise in the level of income would not have any
impact on the income of the labor if the consumption level increases also. An increase in the
wage with a proportional increase in the consumption wills left the wage increase stagnant as the
basic goods basket will not be increased. Cortically it is stated that the minimum wage level
increase have a negative effect on the industry and trader. But the labor class will earn. The
increase in the industrial expenses could raise the level of unemployment in the labor market or
there could be increased competition and the discharge from job. The researchers viewed the
market as that a moderate increase in the minimum wage is better for the industrial and the wage
earner both. It they will not affect the hourly rate and number of hours worked in the market. The
only burden of this minimum wage increase is born by the private sector. It increases their
income and ultimately the prices of the product increases.
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Minimum wage does not provide compensation to the poor families till the rates of the basket of
goods are not lowered. It does have any effect on the redistribution of the income level or the
poverty line.

The recent research showed that the minimum wage reduces the employment level of the skilled
labor. The unskilled are ready to work at the minimum wage while the skill is reluctant to do so.
They want the return according to the work performed. There are families who are providing
skilled labor. The study reveals that the minimum wage tends to reduce the educational
attendance because the poor are not able to meet their educational expenses so they left schools.
They do not even have time to learn skill they learn during work. They work below the minimum
level. It leaves drastic effects on the overall income level of the labor (neumark, 2002). In the last
few decades the wage policies have earners recognition all over the world economic conditions.
It is stated that the labor class is also affected on the gender basis. The gender role cannot be
ignored in the labor market. The market is always segregated on the gender basis. In some
industries women are preferred and provided better job opportunities than their male
counterparts. The effects on the market on gender basis will be as defined in the following
diagram when the minimum wage level is increased. By July 01, 2014, specialists sexual
orientations which are influenced by expanding the government the lowest pay permitted by law
to $9.80 (by July 1, 2014)
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The minimum wage level increase in the market shows a positive trend to the
female wage earners as compared with the male in the market. Educational
attainment of workers affected by increasing the federal minimum wage to $9.80
(by July 1, 2014)

OBJECTIVES OF THE STUDY

The research questions are based on the main objectives of the study which defines the variations
more responsively and their impact also. The main purpose of the project to study

Its impact on household income

To find earning differentials among workers
The main factors effecting the minimum wage
Awareness about wage earner effect on their household
On the basis of estimated research findings, suggest the policy recommendations
To examine determinants of wage differences among workers due to different factors
When costs and benefits occur in the future, they need to be discounted to the present in order to
make a comparison between them. If the decision to implement a project depends on whether the
costs outweigh the benefits, then it is important to put both costs and benefits in common units
for comparison. Various improvement financial analysts had emphasized on the significance of
value development of economy. However, the new review had uncovered that there were other
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critical issues than development rate. These issues incorporated the advantages delighted in by
female in the economy and the development rate of these advantages. The work issue had turned
out to be not kidding in light of the fact that economy was discovered not able to retain the
amplified work constrain each year. Gaining disparity had different measurements, for example,
territorial qualities, financial varieties and statistic attributes and Employer organization qualities
appears like contract sort, monetary division, firm size, and unionization. Institutional attributes
were instruction and expert preparing, aggregate wage haggling, modern relations, parental leave
strategies, and childcare. Some social markers were ladies instruction and expert decisions and
profession design and so on those qualities had brought about sex segregation in the labour
advertise. Sex disparities cause the wasteful aspects which negatively affected development and
improvement (Viktor, 2006).

CHAPTER 3
Literature Review

Literature provides the related information about the research performed by different
researcher in their related field of study. It provides us with the knowledge about which we are
going to study in future. And the future perspective is based on the recommendations provided
by the researchers in any filed or course of study. The wages are taken as the area and skill on
various cultural and socio-economic indicators in the economy. Difference is found in these
factors on the basis of region, area and country. In different countries, many studies are
conducted about each factor defining a logical view. The studies reveal various factors that lead
to minimum wage and its impact on income in the Hong Kong labor market. So, the literature
reviews of some studies done by other researchers are presented in the reviews which directly
and indirectly are related to the ongoing research. The literature review provides a useful sum of
research work we are going to base our study upon.
Human capital theory related to difference of wages on the basis of skill provided suggest
that wages are mainly concerned with the productivity in a flexible or inflexible working
atmosphere. The observed difference should be explained completely by the productivity
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differences of male and female. Difference in gender occurs when same potential productivity in
male and female were paid differently in market.
Cored and bijou (2012) based their research on measuring the minimum wage earned by the
skilled and unskilled workers in the Indian labor market. The main objective of the study was to
provide instruments of macroeconomic policy to find the international minimum wage goals. The
developed countries took work from under developed countries where they have a labor market
of minimum wage earners. Data about different countries like sir links, china, Cambodia and
Pakistan is taken. All the countries provide knowledge that there are some minimum wage laws
followed in the labor market.

OECD (2015) has reported that the countries having minimum wage earning in the current labor
market are going through many transitions. The labor laws are improving and the wage gas are
reducing. People are given their required share of services and skill provided by them. Legal
minimum wage is followed now in the labor market. So the market needs to be met easily.

Stephen and Kristina (2005) checked on that level of stress identifying with the part of least at
work environments. A scope of research outlines was included and for this examination no
limitations were made on the premise of control of the member and the wage level. The review
uncovered that ladies reported higher worry when contrasted with men. Moreover, the proof for
antagonistic impacts of different parts, absence of vocation movement, wage level and
stereotyping was conflicting. The paper reasoned that the proof with respect to stress and stressor
is conflicting. Female face more worries in the workplace than male. The low wage has lesser
impacts particle the ladies.

Mumford, 2015 stated in his research that the minimum wage earners more in the labor market.
The current population survey is used for this study. The data from 2005 2008 is taken from the
survey. In this period the economy had shown larger increases in the wage. The heterogeneity of
the data is checked by the dependent variables such as age, gender, income and the ethnicity.
Ordinary least square provide the small results. The results reveal the fact that the minimum
wage increase causes a reduction in the low wage earners growth.

Nettene and Adair (2005) clarified the propensity of male and female commitments to the
determined gaining crevice in various occupations and the wage level. Overview information
 9

demonstrated that the request and supply constrains in the different related word related variables
and their impact on wage rate. Sexual orientation word related isolation affected acquiring
disparity even in the wake of controlling human capital and business prerequisites. The review
was expressive. Word related isolation was found in youth which altogether connected with
human capital, living arrangement and business necessities.
Nettene and Adair (2005) clarified the propensity of male and female commitments to the
constant acquiring crevice in various occupations. Study information demonstrated that the
request and supply drives in the different related word related variables and their impact on wage
rate. Sex word related isolation impacted procuring disparity even subsequent to controlling
human capital and business prerequisites. The review was engaging. Word related isolation was
found in youth which altogether connected with human capital, home and work necessities.
Asma and Reilly (2005) concentrated the size of people in general and private mimimum wage
differential in Pakistan. When contrasted with different nations open division specialists in
Pakistan have a tendency to had higher wage and instructive level than private segment.
Information was taken from Pakistan work drive overview 2001-02. Open division in Pakistan
had compacted wage dispersion and a littler wage rate additionally, than that won in the private
area. Experimental investigation of the review recommended that around two-fifth of the crude
differential in normal time-based compensations between the two part was represented by the
differentials in normal qualities. The assessed open division increase was of the request of 49%
and considerable by the models of the economies of created nations. The quintile relapse
evaluated propose that the increase was found to decrease monotonically with development up
the with the restrictive wage dissemination.
Kevin et al. (2006) inspected the determinants of wage isolation at the foundation level of the
Spanish firm. Occupation, industry, territorial social contrasts and foundation measurements of
ladies tended to expand the sex the lowest pay permitted by law hole. Information was taken
from wage and employment attributes study of Spain. Comes about demonstrated that the part of
agreement between the specialist and the foundation was feeble and even in the wake of
controlling firm size factors stayed positive and very critical. In all day work ladies segment is
emphatically skewed. The paper recommended a multi-dimensional process was required to
determine the sex isolation prepare.
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The heterogeneity of the data is checked by the penniless components, for instance, age, sex,
wage and the ethnicity. Standard least square give the little results. The results reveal the way
that the most minimal pay allowed by law increase causes a diminishment in the low providers
advancement.
It was clarified the slant of male and female obligations to the chose getting separated in various
occupations and the wage level. Layout information demonstrated that the request and supply
propels in the unmistakable related word related variables and their impact on wage rate. Sexual
presentation word related separation affected securing uniqueness even in the wake of
controlling human capital and business basics. The review was expressive. Word related
separation was found in youth which absolute connected with human capital, living game-plan
and business necessities.
It is considered trade headway and the piece of human capital and occupation characteristics in
wage affirmation. In her Study she chose the piece of human capital improvement and business
qualities of supply side determinants in return progression. Essential objective of the audit was to
make sense of if solitary characteristics, for instance, sex, work region, work nature, educational
abilities and various word related qualities achieved the wage hole to augmentation or decay.
Distinctive components like extending sex pay fissure, a higher wage premium to the most
essential enlightening capacity and basically stable wage to different occupations after some time
are discussed. Expanded Mincerian obtaining limit was performed using cross sectional data.
Data was taken from work propel audit of Pakistan. The audit surmised that to some level of
quality in the ROR to most informative abilities however extended return to the most vital
capacity in the season of trade headway.
Pay openings energized through fundamental pay isolation since people had assorted
characteristics and slants. Particular qualities may achieve bring down productivity potential
hence the social affair was pressed in lower paid work. Discretionary data was used to run clear
ordinary smallest square. Work effects were clear from the substances that qualifications
animated from the point of view of the relatives who were challenged person or the respondent
themselves were debilitate. There were found regional varieties in addition. It was clear from the
disclosures that quality of the sexual introduction pay cleft over ethnic and incapacitated pay
gaps. In any case, given the central impact of the sex pay opening was a result of the tyke
bearing and raising activities.
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Chaudhry and khan (2006) attempted to watch the variables that influence female work
constrains investment in the provincial territories of Pakistan. The information was taken from
Pakistan work constrain review for a long time. They watched that the purdah framework was
adversely identified with female work compel cooperation rate alongside family obligations of
female. While the females having a place with the landless family and less family earnings were
contributing decidedly in the process of giving birth compel. The work drive cooperation of
female work compel in Punjab territory was least and most elevated in Baluchistan.
Santos et al. (2010) inspected the representative preparing, wage scattering and equity in Britain.
Board information from 1998-2001 was utilized to investigate the arrival to preparing and force
of representatives utilizing decay examination. It was found that the profits significantly rely on
upon the way of preparing i.e. general or particular; financing of the preparation and the
expertise levels of the beneficiary whether office or manual. The review presumed that there was
a more prominent effect of preparing on the efficiency and wage to vary as per the occupation
and the age of the laborer. Exceptionally gifted worker was paid more noteworthy return which
makes an idealistic hover for salaried representatives and an endless loop for blue caught
specialists.
Farooq and Suleiman (2006) clarified month to month gaining differential amongst male and
female work compel in Pakistan's work showcase. Information from the Pakistan social and
expectation for everyday comforts estimation is utilized. Month to month acquiring of male and
female is disintegrated utilizing Oaxaca blinder decay technique. Comes about demonstrated that
male specialists appreciated monetary preferred standpoint over female in the market while
having same qualities. Male relapse assessed that male laborers procure 72% more than female
while female relapse evaluated that male specialists win 82% more than female having similar
attributes. 75% to 85% of male-female procuring differential depended on sex separation in the
market. Discoveries of the review bolstered human capital hypothesis. The review showed that
higher gaining was connected with the larger amount of instruction.
Sabir and Aftab (2007) concentrated the dynamism in the sexual orientation wage hole in
Pakistan work showcase. In his review concentrates on the effect of late monetary improvements
on the sexual orientation pay hole. Factors like business, occupation task, and preparing and
manager worker conduct example were seen over the contingent wage dissemination. Two-way
ANOVA examination was made by utilizing essential information. Comes about demonstrated
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that in high development period ladies were pulled in to work advertise through giving more
open doors and it likewise lessened unemployment rate. The troughs ought to give break even
with opportunities to human capital. Consider suggested that segregation cuts down the
confidence of the specialists.
Marc and Coulombe (2007) had considered whether the advanced education among young ladies
generously diminished the sexual orientation procuring hole in business and profit. Information
was taken from the auxiliary source. Conventional review had decayed the normal procuring
crevice by utilizing the Oaxaca blinder disintegration strategy. Consequences of the review
demonstrated that the procuring hole climbed modestly at the college level yet stayed unaltered
at the school level. It was presumed that young ladies had been making strides on men regarding
instructive fulfillment. Instruction was the coupling power behind lessening in the acquiring
differential. Training completely clarified the lessening crevice in work contrasts.
Human capital hypothesis identified with contrast of wages on the premise of ability gave
recommend that wages are principally worried with the profitability in an adaptable or
unbendable working climate. The watched contrast ought to be totally clarified by contrasts in
efficiency of male and female. Sexual orientation distinction happens when male and female who
had same potential in profitability were paid diversely in market.
Cored and bijou (2012) construct their examination with respect to measuring the lowest pay
permitted by law earned by the gifted and untalented specialists in the Indian work showcase.
The principle goal of the review was to give instruments of macroeconomic arrangement to
locate the universal the lowest pay permitted by law objectives. The created nations took work
from immature nations where they have a work market of the lowest pay permitted by law
workers. Information about various nations like sir connections, china, Cambodia and Pakistan is
taken. Every one of the nations give information that there are some lowest pay permitted by law
laws followed in the work advertise.
OECD (2015) has reported that the nations having the lowest pay permitted by law winning in
the present work market are experiencing many moves. The work laws are enhancing and the
wage gas are diminishing. Individuals are given their required share of administrations and
aptitude gave by them. Legitimate the lowest pay permitted by law is taken after now in the work
showcase. So the market should be met effortlessly.
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Mumford, 2015 expressed in his examination that the lowest pay permitted by law workers more
in the work advertises. The present populace study is utilized for this review. The information
from 2005 2008 is taken from the study. In this period the economy had indicated bigger
increments in the wage. The heterogeneity of the information is checked by the needy factors, for
example, age, sex, wage and the ethnicity. Customary minimum square give the little outcomes.
The outcomes uncover the way that the lowest pay permitted by law increment causes a
diminishment in the low breadwinners development.
Nettene and Adair (2005) elucidated the inclination of male and female duties to the decided
picking up cleft in different occupations and the wage level. Outline data showed that the
demand and supply compels in the distinctive related word related factors and their effect on
wage rate. Sexual introduction word related disconnection influenced securing divergence even
in the wake of controlling human capital and business essentials. The audit was expressive. Word
related detachment was found in youth which out and out associated with human capital, living
course of action and business necessities.
Yasmin (2009) considered exchange advancement and the part of human capital and occupation
traits in wage assurance. In her Study she decided the part of human capital development and
employment characteristics of supply side determinants in exchange advancement. Primary goal
of the review was to figure out if singular attributes, for example, sex, work area, work nature,
instructive capabilities and diverse word related qualities brought about the wage crevice to
increment or decline. Different factors like expanding sex pay crevice, a higher wage premium to
the most noteworthy instructive capability and pretty much stable wage to various occupations
after some time are talked about. Increased Mincerian procuring capacity was performed
utilizing cross sectional information. Information was taken from work compel review of
Pakistan. The review inferred that to some level of strength in the ROR to most instructive
capabilities however expanded come back to the most noteworthy capability in the time of
exchange advancement.
Metcalf (2009) investigated the compensation holes over the correspondence strands. Pay holes
excited through basic pay segregation since individuals had diverse attributes and inclinations.
Distinctive qualities may bring about lower efficiency potential thus the gathering was packed in
lower paid work. Optional information was utilized to run straightforward normal slightest
square. Work impacts were clear from the realities that distinctions stimulated from the
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perspective of the relatives who were cripple or the respondent themselves were incapacitate.
There were discovered territorial variations moreover. It was clear from the discoveries that
strength of the sexual orientation pay crevice over ethnic and debilitated pay holes. Be that as it
may, given the fundamental effect of the sex pay hole was because of the tyke bearing and
raising exercises.

CHAPTER 3
Approach and Methodology

3.1 Study Tools

The information is taken from specifically to the field think about and from alternate foundations
also with the end goal of the review were gathered over the span of this review. The review was
directed in close understanding with the goals that how a raise of the lowest pay permitted by
law level influences the low wage bunch in HK. What is the ideal level? Particular consideration
is taken by the impartially factors of the venture whom reliance was to be checked and the
pointers relying upon the level of honest, quantitative and numerical data reachable, and the
degree to which it was conceivable to measure conclusion from essential assessment,
examination and perception. The fundamental instrument of the review was the formal surveys
set by strategy and open finished unstructured meetings identified with the example think about
with the particular family units and firm proprietors. Extra examination apparatuses included
perceptions, particularly of work market are incorporated into the inspected work marled for the
lowest pay permitted by law and casual dialogs with individuals in the review groups. The
organized polls were examined among specialists required in assurance of work potential in
market. Amid the field study prepare, the review group received an intelligent approach as
opposed to a 'question and answer session' with the respondents to improve the nature of
information and data gathered.
3.2 Sampling
The inspecting movement was spoken to by the available time for the survey was a month for the
field consider. Purposive testing was used to pick work showcase for the most minimal pay
allowed by law laborers for the field examination. A people of 250 is decided for meeting to get
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that how a raise of the most reduced pay allowed by law level impacts the low wage group in
HK.

What is the perfect level? The amount of respondents was 250 which were picked using the
purposive analyzing system and from those 30 were picked again using again purposive testing
method.

By using purposive sampling

Respondents = 250
technique respondents of 250 were
selected. Out of these 250 respondents
another 30 were selected again using
same technique purposive sampling Labor market
technique
People having
minimum wage level
with their incomes

3.3 Methods technique:

There are three main phases of the study done which are segregated on the basis of different
activities performed during the inception research and the data collection:
a. Beginning Phase: Desk Study
Definition of field examination systems, planning of surveys, configurations, strategic game
plans for field visits was the principle exercises did amid this stage. The field visit schedule was
likewise arranged.
b. Evaluation and Data Collection Phase: Field Study
Field examination works (which expended just about a week) utilizing proper apparatuses and
procedures as depicted above was the fundamental exercises amid this stage. People and
relatives, some key people in the groups were counseled and their feeling gathered. The normal
time spent in on per work to gather information and data was 20 minutes with a greatest of 40
minutes.
c. Last Phase: Interpretation, Report Preparation and Data Analysis
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Once the field exercises were finished, every one of the information gathered from the field were
affirmed, cleaned and broke down utilizing appropriate PC programming programs (Microsoft
exceed expectations and Word). The result of the investigation has been joined in a succinct
report. The general technique took after amid the review has been delineated in the
accompanying stream outline.

Data Collection and Evaluation Phase: Field Study

Field overview utilizing participatory devices and procedures to accumulate

data on capability of work the lowest pay permitted by law

Perception, walk completely through and contextual analyses

Talk and casual meeting with group respondents

Phase of Concluding: Data Interpretation and Preparation of Report

Analysis of results, its interpretation and field data assemblage

Draft Final Report preparation

Acceptance of Final Draft with suggestions and remarks

Final Report Completion

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3.4 Data Analysis

Information was gather through meeting timetable and investigated by utilizing Statistical
Package for Social Sciences (SPSS). The relapse examination is made for this reason.
Figure 3.1 Theoretical Framework of the Study

Independent Dependent
Variable Variable
Education
Occupation

Age

Income Minimum Wage

Region
of Level Affects
Individua
Occupation

Industry

Job Status
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The diagram shows the flow of independent and the dependent variable. The dependent variables
are those which affect the income level of the individual in the Hong Kong labor market, where a
raise of the minimum wage level affects the low income group in HK.
Modeling and Technique:

Market has always shown a difference in the labor market where wages minimum wage
have greater impact on the individual income characteristics. It is possible to decompose the in
two different components. First part of the decomposition defined the gap in that contributes to
the estimated differences in the mean human capital characteristics of the two groups and this
part were called the differences in characteristics. Second part was the difference in estimated
parameters of the earning function of males and females and this part was called the differentials
or discrimination (Oaxaca, 1973). Impact of education and experience is checked to know the
impact of the minimum wage increase in the labor market and its affect on the income. There had
been a misleading effect to assume a uniform rate of return. The method provided best results.
The method examined the interaction of terms by introducing the explanatory variables in the
earning differential functions for the accumulative affect of all the explanatory variables (Nazli,
2000). The OLS common methodology used to determine the affects of earning on income with
an increase in the minimum wage level. Theoretical implication explains the condition where all
workers whether male or female having same characteristics received the same amount of return.
Whereas as disparities are estimated through ordinary least square method (Pirmana, 2006).
Market has laws resulted in the wage difference and the minimum wage levels according to the
economic situations. The impact of the minimum wage level is checked on the income level of
the respondents in the labor market survey. In the wage market if the minimum wage level is
increased it will definitely have an impact on the income of the low wage earners in the labor
market. As the wage increases their income increases as well the level of consumption increases
also. For this purpose we have used basic regression model which is as follows
Ln Yi = Xi + i
Where i= number of respondent
Ln Yi is the natural logarithm of the income for the individual i
Xi = the attributes affecting the wage such as age, education, skill, job nature, industry, regional
divide
And, = vector estimate parameters using the ordinary least square method
 19

i = residual errors that are supposed to be constant and with zero mean value

Where i= number of respondent

Ln Yi is the natural logarithm of the income for the individual i
Xi = the attributes affecting the wage such as age, education, skill, job nature, industry, regional
divide
And, = vector estimate parameters using the ordinary least square method
i = residual errors that are supposed to be constant and with zero mean value

Educational Status of Respondents

45
40
35
30
25
20
%age of Respondents 15
10
5
0

Educational level

Sampling Techniques

The review depends on helpful testing because of time restrictions. The information is gathered
from workers level of people from Hong Kong work advertise. The reason for which is that
information accumulation from this populace was simple and advantageous. They are accessible
amid the meal break and outside the manufacturing plants and workshops after move change.

3.2.3 Sampling
 20

The examining depends on the advantageous inspecting procedure where 120 surveys were
appropriated among the work and common laborers who are breadwinners at various levels. It
could be every day, week by week or per piece wage from the work showcase.

3.3 Scales and measures

All the review factors will be measured on a 5 point Likert scale running from Strongly
Disagreed=1 to firmly agree=5. The develop 'SCM practices' has been embraced from Li et al.,
(2005, 2006).

3.4 Data investigation system

Information will be investigated utilizing SPSS and taking after systems / tests will be done:

Correlation Analysis
Regression Analysis
Descriptive statistics
Reliability analysis
4: Time frame

Time frame for the study analysis of a raise of the minimum wage level affects the low income
group in HK from the interview and the other requirements are shown on the following table.

S. no. 20 4 2 to 16 17 to 24 24 to 31
October to November December December December
Activity 3 to 1 2016 2016 2016
November December
2016 2016
1 Introduction
2 Literature review
3 Data Collection
4 Data entry and
Analysis
5 1st draft
6 Final Draft
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3.5 Limitations
The review is finished by focusing on the work market of Hong Kong as conceivable amid field
of our review. In any case, as like in each reviews or overviews necessities of this kind research
consider. This review has its impediments which are depicted as takes after:
Given the constrained example size of the venture and the characterized presentation, the
outcomes and finish of the review couldn't speak to the total range of the examination
work. While, the result will be unmistakably appears to be perceptible and same in the
exploration region with comparable social and monetary, social and topographical
districts isolated for the review. The result of the review is more suggestive than delegate
in nature.
This study is identified with the time confinement where the time span was too short for
this review. There are numerous different limitations identified with the procedure of
study. There can likewise be identified blunders and exclusions concerning the technique
and in the discoveries of the review.
The wellspring of essential information and data was fundamentally the work advertise
overview. It ought to be noticed that perspectives and discoveries encased in this report
are gathered specimens from the work market of the individual respondents
The contemplate had planned to investigate some essential work showcase data about the
lowest pay permitted by law which has affect in the salary. In the event that this level is
raised how much the pay will influence the work showcase in Hong Kong. It is
conceivable that there were a few weaknesses in careless real data on various chose parts
of work market. It was felt that a portion of the respondents had general pattern of
concealing definite data because of different reasons while some of them were hesitant to
discuss their wage. A couple of them asserted ignorance and a few people said a wage
level which was either low or high later on. Since it was a study made by the work class
there was no real measurement and to the extent quantifiable information and data were
concerned. The reviewing method was utilized, which may not give splendidly exact
outcomes
This consider has been done inside an undersized timeframe outline and with numerous
different impediments exist which may bring residuals a few mistakes methodologically
and in the discoveries introduced in this.
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Part 4
Results and Discussions
The part four will talk about the outcomes got from the information gathered for this reason. The
information is gathered from the respondents through meeting plan and was broke down by
utilizing Statistical Package for Social Sciences (SPSS) and the accompanying outcomes were
determined. The outcome in the table give legitimate rate that the quantity of individuals who
addressed the question yet they didn't gave correct data. It happens that a portion of the
respondents don't answer a specific question where they took hesitant answer or they were not
ready to share their figures. . The outcomes are than examined for the investigation which is as
beneath.

Table 4.1: Educational Level of Respondents

Frequency % Valid % Cumulative

%

Uneducated 17 56.7 56.7 56.7

Up to Middle 8 26.7 26.7 83.3

Metric 3 10.0 10.0 93.3

Intermediate 2 6.7 6.7 100.0

Total 30 100.0 100.0

Source: Survey, 2016

It is essential to discuss the details about the educational level of the respondent so the expected
income could be determined. The educational level is taken into account while calculating the
income and the profession. Cumulative percentage shows total percentage on each level. The
result of the data collected showed that a majority of the (56.7%) of the respondents that were
interviewed were illiterate. The respondents up to 26.7% of the respondents were qualified up to
center level. 10% of the respondent's capability was up to registration level. 6.7% of the
respondents' instructive level was up to middle of the road.

Table 4.2: Family Size of the Respondents

 23

Frequency % Valid % Cumulative

%
1-3 4 13.3 13.3 13.3
4-6 7 23.3 23.3 36.7
7-9 10 33.3 33.3 70.0
10-12 5 16.7 16.7 86.7
13 or more 4 13.3 13.3 100.0
Total 30 100.0 100.0
Source: Survey, 2016

The information uncovered that the respondents up to (33.3%) have the family estimate
went from 7-9 individuals. In connection to the overview less greater parts appeared (23.3%) of
the respondents were having relatives from 4 to 6. 16.7% of the respondents family estimate
went from 10-12. Measure up to number of families (13.3%) of the respondents was having
family estimate from 1 to 3 and more than 13. This shows with increment in the relatives the
utilization increments moreover. There could be the way that there could be expanded
satisfaction record if every one of the individuals are winning. In the event that there are less part
gaining then there would win neediness.

Table 4.4: Land Ownership Status

Frequency % Valid % Cumulative

%

Owned 16 53.3 53.3 53.3

Rented 5 16.7 16.7 70.0

Rented + 9 30.0 30.0 100.0

owned

Total 30 100.0 100.0

Source: Survey, 2016

The data showed the fact that about (53.3%) of the respondent had their own their own houses
rather than having rental status or both. About 30% of the respondents were having their own
land and also they also rented a portion to others. While only 16.7% of the respondents were
living on rent and they had no personal houses.
 24

Table 4.6: Annual Incomes of the Respondents

Frequency % Valid % Cumulative

%

10,000 10 33.3 33.3 33.3

20000-30000 5 16.7 16.7 50.0

30000-40000 5 16.7 16.7 66.7

more than 40000 10 33.3 33.3 100.0

Total 30 100.0 100.0

Source: Survey, 2016

Information investigation demonstrated that 33.3% of the respondents were having yearly
acquiring from 10,000 while same rate of respondents (33.3%) was winning more than 40,000.
Though, the 16.7% of the respondent yearly pay went from 20,000 and same rate of respondents'
yearly gaining ran from 30,000. Yearly salary indicates the amount of the respondent is gaining
and what amount is devoured by him. A part of pay is put something aside for future cost.

Table 4.7: nature of employment

Frequency % Valid % Cumulative

%

Skilled 1 3.3 3.3 3.3

Unskilled 11 36.7 36.7 40.0

Clericals 18 60.0 60.0 100.0

Total 30 100.0 100.0

Source: Survey, 2016

Majority (60%) of the respondents told that they were skilled employees and working on weekly
wages. The respondents around (36.7%) were unskilled labor and working on per hour and the
per piece wage rate. The 60% of the respondents were doing clerical jobs. The job nature is
 25

necessary to define the income and the source of the income so the standard of living can be
judged.

Table 4.8: No. of services performed

Frequency % Valid % Cumulative %
Frequency % Valid % Cumulative
Clerks 7 23.3 23.3 23.3
% The data
Craftsman 17 56.7 56.7 80.0
1 10 33.3 33.3 33.3 showed
Plant 2 6.7 6.7 86.7 that there
2 14 46.7 46.7 80.0
operators were a
3 5 16.7 16.7 96.7
Market sale 4 13.3 13.3 100.0 number
More than 3 1 3.3 3.3 100.0
workers of people
Total 30 100.0 100.0 were
Total 30 100.0 100.0

performing more jobs to earn a good living for them. There were about 33.3% people who were
employed in single job while 46.7% were involved in two jobs a day. There were about 16.7%
respondents who were mostly unskilled and were doing more than three jobs to earn a living.
They were living a hard life to earn more to fulfill their needs and basic necessities of life.

Table 4.8: Majority of occupations

Source: Survey, 2016

 26

The data showed that almost 56.7% of the respondents were craftsman. The range of 23.3% were
clerks while 6.7% were plant operators and the rest of the 13.3 % were salesman in the market.

Table 4.9: job status

Frequency % Valid % Cumulative % So

urc e:
Self employed 5 16.7 16.7 16.7

Paid 17 56.7 56.7 73.3

employers

Trade workers 8 26.7 26.7 100.0

Total 30 100.0 100.0

Survey, 2016

About 56.7 percent of the respondent were doing their own work and provide services to
independent employers. They performed services for different employers. 56.7% were paid
employees to different employers. Around 26.7 percent were trade employees. They were
providing services to the market traders on their shops and factories. It showed their nature of
working and the way they perform different task.

Table 4.10: Primary Household income Source

Frequency % Valid % Cumulative %

Services 25 83.3 83.3 83.3

Other jobs 5 16.7 16.7 100.0

Total 30 100.0 100.0

Source: Survey, 2016

About (83.3%) of the respondents showed their primary household income from different
sources. Whereas, rest of respondents told that they were earning from the resources other than
paid employment.

Table 4.11: Daily Consumption of income

 27

Frequency % Valid % Cumulative

%

1-3 7 23.3 23.3 23.3

3-5 16 53.3 53.3 76.7

5-7 6 20.0 20.0 96.7

8 or more 1 3.3 3.3 100.0

Total 30 100.0 100.0

Source: Survey, 2016

More than half (53.3%) of the respondents average daily income was from 3000 to 5000 while
23.3% of the respondents used for 1000 to 3000. 20% of the respondents said that their average
usage was 5000 to 7000 .

Table 4.12: Average consumption (Monthly)

Frequency % Valid % Cumulative

%

251-700 1 3.3 3.3 3.3

701-1200 4 13.3 13.3 16.7

1201-1700 9 30.0 30.0 46.7

more than 1700 16 53.3 53.3 100.0

Total 30 100.0 100.0

Source: Survey, 2016

Majority (53.3%) of the respondents spent more than 1700 rupees on average for their needs in a
month while 30% of the respondents spent 1201 to 1700. 13.3% of the respondents spent 701 to
1200 rupees as their monthly consumption while only 3.3% said that their average consumption
was from 251 to 700.
 28

Overall data analysis showed that majority of the respondents was willing to adopt
alternative resources of employment. They were not satisfied with the current wage paid
according to the needs of the financial issues they are facing in their day to day life. Majority of
the respondents said that current wage resources were not able to fulfill their requirements of
basic living standards. Now they are looking for alternative wage resources that can overcome
their problems of daily life requirements. They require that their basic necessities should be
fulfilled.

Data analysis showed that majority of the respondents were having resources that could stimulate
their income but they were lacking awareness about the technical knowledge and expertise of the
relevant skill from which they can earn more to provide themselves a standard of living.

CHAPTER 5

The research study has constraints with respect to the variations in the variables and the data
collection. Some of these constraint related to the research study are as follows.

5.1 CONSTRAINTS

Lack of awareness
Lack of expertise
Unskilled labor class
Under utilization of resources or skills
Non availability of performance data

5.2 REGRESSION ANALYSIS:

The regression analysis shows if there is relevancy in the variables or the variables are dependent
or not. The analysis shows if the variables have positive or negative impact on the income of the
independent Variable. OLS estimation: Natural log of Monthly pay had been utilized as needy
variable in the estimation of pay relapse capacities since common log change made the
information regularly appropriated among various factors.
Independent Variable:
income of respondent = 55.660174 + 1.4748496
 29

Sample size: 250

R (correlation coefficient) = 0.3945361
R-sq = 0.15565873
Estimate of error standard deviation: 3.8524531

Parameter estimates:

Parameter Estimate Std. Err. Alternative DF T-Stat P-value

Intercept 55.660174 3.9493101 0 48 14.093645 <0.0001

Slope 1.4748496 0.49579185 0 48 2.9747355 0.0046

Analysis of Variance table for Regression Model:

Source DF SS MS F-stat P-value

Model 1 131.33226 131.33226 8.8490514 0.0046

Error 48 712.38694 14.841395

Total 49 843.7192

Predicted values:

X value Pred. Y S.E.(Pred. y) 95% C.I. for mean 95% P.I. for new

8.5 68.196396 0.62325246 (66.943263, 69.449529) (60.349808, 76.042983)

The data analysis made by regression model suggests that the variables:

1. Education
2. Occupation
3. Age
 30

4. Region
5. Industry
6. Job status

Used have the positive impact on the earning practices on performance, and there should be
resources to fulfill the basic standards of livelihood. These variables suggest the relationship of
the wage and the income. The factors affecting the wage rate determination and their ultimate
effects on the income of the respondents.

5.3: Include the Matrix

Criteria Weight Occupation Education Industry Job status

Standard of living 0.15 8 1.2 2 0.3
Livelihood 0.4 3 1.2 8 3.2
Professionalism 0.1 3 0.3 8 0.8
Consumption 0.3 2 0.6 9 2.7
Savings 0.05 0 0 8 0.4
Total 1 3.3 7.4

The matrix suggest that has the positive the impact of wage earning on the standard of living of
the labor and they are earning their basic livelihood. Industrial choice as a positive impact by the
education or the skill required for the work. There is always a need of improvement with the
time. The table shows that there is correlation among the resources available and the skill
required for the performance of the work. Occupation, education, industry where they are
working and the job status has a great impact on the standards of living, likelihood,
professionalism, consumption and the savings of the wage earner. The weights are provided to
know the effectiveness.
 31

CHAPTER 6
Conclusions and Recommendations

6.1 Conclusion

We explored the potential and valuable aspects of wage earner either they are working on
hourly basis, weekly or per piece required. On the basis of results, following conclusions are
drawn for the wage earners in the Hong Kong labor market.

The study found that, the people were reliant on the hourly basis of wage to earn a living for
them and to fulfill household requirements. The spend money for household consumption to
provide them basic necessities of life. The respondents use animal dung cakes for fuel purposes.
There was considerable usage which leads to socio economic issues and health hazards for the
labor. The more they work the lesser return they are provided with so they are feebler. Their
health got down day by day and they became paralyze with the growing age.

With the increase in the industry they are provided with more job opportunities but at the same
time their wage rates do not increase with an increase in the workload. They are loaded with
more and more work and the competition grows with the growing rate of population.

Installation of technological advancements machines is replacing man power. That why the labor
are ready to work on the low wage rate. There annual income is reduce the in this regard. Study
revealed that lack of motivational organization and non availability of skilled persons and
expertise are one of the reasons for which the wage earners are not having enough resources in
their respective fields.

About fifty percent of the labor has the facilities required by the. They are expert in their
knowledge or in other words them more skilled and are provided with the relevant work.

Energy problem is quite alarming in Pakistan and has negative impacts on the life of the
people. Therefore it is of dire need to identify and use alternative renewable energy resources to
overcome the problem and in this regard biogas plants will prove to be beneficial.

The study concluded the high preliminary investment for one household is one of the
main constraints that hold back the wage earning society in rural communities.
 32

Overall, the study accomplished that direct and indirect benefits, simple technology and
high operational effectiveness makes biogas practical and realistic technology in rural areas.

6.2 Recommendations

In light of the review discoveries the accompanying proposals are recommended:

Separate organization ought to be made practical to investigate the potential zones

and give urging conditions to influence individuals to receive new strategies and
aptitude to raise their procuring level so great expectations for everyday comforts
could be accomplished.

Public segment ought to make strides for the advancement of work. Spreading data
about essential wage and assets ought to be elevated to the country group rather
working just for the urban culture

Consumption prospects are taken into account. Government should provide the
products at the low rates specially the basic living, clothing and the food. So the wage
earners could be encouraged and promoted to take benefits of the resources as well

Labor class should be promoted by the government. Time to time free workshops
should be arranged for them where they can update their skill according to the
growing needs of the industry

Solutions must be provided and made in the possible reach of the labor. Their
financial barrier should be taken into account for which they cannot raise their
children well. The next generation will automatically be labor. They couldnt provide
them the education and skill with the minimum resources. So the government should
strictly pay attention to the wage policies

Government establishments ought to give more endowments to this reason work class
enhancements
Awareness ought to be given to the group through print and electronic media about
wage strategies
Private area ought to be produced and urged with coordinated effort to open division
 33

Public-private organization ought to be elevated to duplicate this administration in the

work advertise
Government ought to arrange workshops and crusades to advance wage rate and the
work rights mindfulness at neighborhood level
 34

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