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This paper aims to provide a review of labour supply responses to increases in minimum or otherwise low wages. In doing so, the paper finds that studies in this area of research are limited. This may be because the labour supply response is partly related to labour demand, and measuring labour supply independent of labour demand proves to be difficult. The review also found few Australian studies covering this topic, resulting in an added reliance on international literature. However, different workplace relations systems across countries can make consistent comparisons between studies difficult. This report is divided into three chapters. Chapter one provides a theoretical discussion on labour supply and features models used to estimate labour supply elasticities. Chapter two discusses the factors that affect labour supply. Chapter three summarises the literature on labour supply responses to increases in minimum wages.

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