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10 Dec 2014

So. Africa: University of Cape Town criticised for using poverty measure to benchmark minimum wage of outsourced staff

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The University of Cape Town (UCT) has come under fire for using the Cost of Basic Needs (CoBN) measure as a benchmark to assess the adequacy of its minimum wage. Josh Budlender and Johan Lorenzen argue that this '...is conceptually problematic, however, as...the CoBN measure is a poverty line, and is not designed for wage-setting '. The full analysis and UCT's response are provided below: