According to
government statistics, the average hourly wage in New Zealand was NZ$23.50/hr in 2016. This means the current minimum wage is equal to 67% of the average wage vs 35% in the United States, 41% in the UK, and 45% in Australia. Assuming constant wage growth (
as per the OECD statistics), the average wage would reach NZ$25 in 2021, meaning the minimum wage would now be a whopping
80% of the average wage. Even the most progressive observer must admit this will have serious distortionary effects.
New Zealand has tried to ignore economic realities before. It did not end well.
