Monday, 3 August 2015

Penalty Rates

I cannot get over every time  I read someone anyone saying how penalty rates must go there is only talk about the effect of labour demand but none on labour supply.

I happen to know quite a few Uni students because of Cricket. A lot who work on the weekends           ( mostly at night) . Now if penalty rates were abolished or lowered guess what would occur?
That's right they would not work on the weekend!  They would work during the week and enjoy themselves on the weekend.
My guess is very few people would work over the weekend if there were no penalty rates

If I read another article or research on penalty rates and the problems of labour supply are not mentioned I will scream!

update:

I didn't know about this. It seems quite silly in that it is setting up a two tiered system.
This is interesting

Productivity Commission report here