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The Other Margin: Do Minimum Wages Cause Working Hours Adjustments for Low‐Wage Workers?

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  • MARK B. STEWART
  • JOANNA K. SWAFFIELD

Abstract

This paper estimates the impact of the introduction of the UK minimum wage on the working hours of low‐wage employees using difference‐in‐differences estimators. The estimates using the employer‐based New Earnings Surveys indicate that the introduction of the minimum wage reduced the basic hours of low‐wage workers by between one and two hours per week. The effects on total paid hours are similar (indicating negligible effects on paid overtime), and lagged effects dominate the smaller and less significant initial effects within this. Estimates using the employee‐based Labour Force Surveys are typically less significant.

Suggested Citation

  • Mark B. Stewart & Joanna K. Swaffield, 2008. "The Other Margin: Do Minimum Wages Cause Working Hours Adjustments for Low‐Wage Workers?," Economica, London School of Economics and Political Science, vol. 75(297), pages 148-167, February.
    • Handle: RePEc:bla:econom:v:75:y:2008:i:297:p:148-167
    DOI: 10.1111/j.1468-0335.2007.00593.x
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    More about this item

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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