Gini coefficient is a measure of a country's income inequality. The value ranges from 0 to 1 with 0 representing perfect equality and 1 representing perfect inequality. As can be seen from the graph above, Singapore currently has its gini coefficient as one of the highest in the world amongst the developed countries. As such, there is a serious need for government intervention to solve this problem. The introduction of a minimum wage is one of the ways to do this. By implementing a minimum wage, it will increase the income of those at the lower end of the market.
In America, the average minimum wage earner brings in half of the income for the family. Therefore this shows how important having a minimum wage is for these people as without it, there would have been an even higher income inequality. Thus we can apply the same concept to Singapore. By having a minimum wage, the income of the low wage earners will be pushed up and thus reducing the income gap between the rich and the poor in Singapore.
In America, the average minimum wage earner brings in half of the income for the family. Therefore this shows how important having a minimum wage is for these people as without it, there would have been an even higher income inequality. Thus we can apply the same concept to Singapore. By having a minimum wage, the income of the low wage earners will be pushed up and thus reducing the income gap between the rich and the poor in Singapore.