THE EFFECTS OF WAGE DEGRADATION ON ECONOMIC GROWTH AND POVERTY IN ZIMBABWE

THE EFFECTS OF WAGE DEGRADATION ON ECONOMIC GROWTH AND POVERTY IN ZIMBABWE

KEITH TICHAONA TASHU

TAFADZWA MOYO

SYLVESTER MARUMAHOKO

This study examined the impact of wage degradation on economic growth and poverty in Zimbabwe. Making use of extant qualitative research methods, the study analysed the trends and patterns of wage degradation in Zimbabwe and its effects on economic growth and poverty. The results showed that wage degradation had a significant negative impact on economic growth and poverty in Zimbabwe. The study found out that the decline in real wages led to a decrease in consumer spending, which in turn had contributed to economic stagnation. Furthermore, wage degradation exacerbated poverty and income inequality in Zimbabwe, with the poorest segments of the population being the most affected. Key drivers of wage degradation included hyperinflation, economic instability and poor labour market policies. The findings of this study had important policy implications for Zimbabwe. To stimulate economic growth and reduce poverty, the government needed to implement policies that promoted wage growth, improved labour market conditions and protected workers' rights. Specifically, the study recommended the implementation of a living wage policy, strengthening of labour unions and the promotion of collective bargaining. Additionally, the government needed to implement policies that promoted economic stability, reduce inflation and increase productivity. By addressing the issue of wage degradation, Zimbabwe could unlock the potential of its workforce and promote sustainable economic growth and development

Zimbabwe Journal of Business, Economics and Management

2026