zaynababdulahititilayo/Minimum-Wage-compliance-Analysis-in-Nigeria

A data science analysis of minimum wage compliance across Nigerian states (2019-2023) using panel data, machine learning and clustering technique # Minimum-Wage-compliance-Analysis-in-Nigeria The minimum wage represents the legally mandated lowest level of pay that employers must provide to workers. In Nigeria, compliance with the national minimum wage is a critical policy issue, as it directly affects workers’ welfare, income stability, and overall economic equity across states. Despite federal wage policies, not all states comply uniformly, often due to differences in fiscal capacity, revenue generation, and debt burden. This project investigates minimum wage compliance across Nigerian states using a five-year panel dataset (2019–2023). The study combines exploratory data analysis, machine learning, and clustering techniques to understand the financial and structural factors influencing compliance. ## Research objectives The objectives of this analysis are to: * Examine state-level trends in fiscal indicators over time * Analyze how financial capacity and debt structure relate to minimum wage compliance * Predict which states are likely to comply or not comply with minimum wage policy * Group states into financially similar clusters ## Data Description **Data Type**: Panel data **Coverage Period**: 2019–2023 **Entities**: Nigerian states ## Variables ### Variable Description Y Minimum wage compliance (binary outcome) X1 Political party affiliation X2 Net allocation X3 Internal debt X4 External debt X5 Internally Generated Revenue (IGR) State State identifier Year Time dimension **Continuous independent variables were standardized using z-scores to ensure comparability across states.** ## Exploratory Data Analysis ### Fiscal Trends Over Time An examination of fiscal indicators reveals a general upward trend in: Net allocation, Internally Generated Revenue (IGR), Internal and external debt. Lagos State consistently records significantly higher values across all fiscal indicators, reflecting its dominant economic position. In contrast, states such as Sokoto and Taraba exhibit relatively low fiscal capaci …