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In: Economics

“Minister of labour, Thulas Nxesi, has gazetted South Africa’s new minimum wage which will take effect...

“Minister of labour, Thulas Nxesi, has gazetted South Africa’s new minimum wage which will take effect from 1 March 2020. The gazette states that the new national minimum wage is R20.76 – an increase of 3.8%”. Adapted from:

https://businesstech.co.za/news/government/374920/6-planned-laws-that-government-hasjust-announced-for-south-africa/ Accessed: 21/02/2020

Provide a discussion on the welfare effect of the above, that illustrates the case for when the above results in unemployment in the market for domestic workers as well as a case for when the above has no effect on the market for domestic workers. Use a diagram to support your discussion.

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