Impact of new minimum wage on food consumption and expenditure pattern of Civil Servants in Isoko North and South local government areas of Delta State

Abstract

This study was carried out in Isoko North and South Local Government Area of Delta State to measure the impact of changes in the minimum wage of civil servants. One hundred and twenty (120) structured questionnaire were administered to a cross section of sixty (60) each for junior and senior staffs in ten (10) government establishments. The data obtained were analyzed using the ordinary least squares method of multiple regression analysis, T-test statistic, deriving marginal propensity to consumer coefficients from simple regression model. The study revealed that female, (55%) constitute the majority of government employees in the study area. Most workers were young and energetic and represented the active labour force. All workers received education in one form or the other which enabled them to function effectively. Majority (69.17%) of the workers were married which indicated that a substantial part of their income was devoted to family upkeep. The empirical results further showed that there was a significant relationship between income level and food consumption, savings, investment, educational expenses, transportation and house rent at (p<0.05). It was further observed that workers consumed more food at the new wages. The marginal propensity to consume (MPC) of low income workers was 986 while those of high income workers was 7967 showing that both groups set aside a large proportion of their income on consumption. It can be concluded that measures proposed should be implemented to enhance workers welfare include periodic wage reviews, checking the rate of inflation and provision of adequate food at affordable prices.