Examining The Effects of Minimum Wage Policy on Employment. A Case Study of Domestic Workers in Ndola

The impact of minimum wage policy on employment remains a topic of considerable debate, particularly within vulnerable sectors such as domestic work. This study is motivated by the need to understand how recent minimum wage adjustments in Zambia have affected employment patterns among domestic workers in Ndola. Domestic workers play a crucial role in the urban economy, and changes in their employment conditions due to wage regulations could have far-reaching implications for both workers and employers. The purpose of this research is to provide a comprehensive analysis of the effects of minimum wage policy on employment, disposable income, purchasing power, and poverty levels among domestic workers in Ndola. A mixed-methods approach was employed, combining both qualitative and quantitative research methods. Data were collected through surveys administered to a representative sample of domestic workers and their employers in Ndola, along with in-depth interviews with key stakeholders, including labor officials. Secondary data analysis was also conducted using existing employment records and government reports. Preliminary results suggest that while higher minimum wages have led to improved disposable income and purchasing power for domestic workers, they have also increased labor costs for employers. For instance, 54.67% of domestic workers reported spending more than half of their income on essential needs, reflecting the critical role of minimum wage adjustments in meeting basic living costs. However, these wage increases have also led some employers to adjust working conditions: 21.33% of employers reported reducing working hours or increasing workloads as a strategy to manage higher labor costs. These findings indicate a complex dynamic where the benefits of higher wages for workers must be balanced against potential reductions in employment opportunities and increased financial strain on employers. The implications of this study are significant for designing balanced wage policies that promote fair compensation without compromising employment levels and economic stability. The research aims to inform and, contribute to the broader discourse on labor market regulations, poverty reduction, and economic inclusion in Zambia.