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The National Minimum Wage: Coverage, Impact and Future

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  • David Metcalf

Abstract

Since its establishment in 1997, the Low Pay Commission (LPC) – whose main task is to recommend the rate for the national minimum wage (NMW) to the Prime Minister and the Secretary of State for Trade and Industry – has operated in a very open manner. Commissioners and the (small) secretariat have visited all the corners of the UK and hundreds of workplaces. Large volumes of written evidence and much oral evidence inform successive reports (LPC, 1998, 2000, 2001a,b, 2003). The LPC also values and nurtures its links with the academic community, many of whom have undertaken research for the LPC which has greatly contributed to the debate on the merits or otherwise of the NMW. In addition the LPC have periodically held conferences where the latest research on low pay and the NMW is discussed and evaluated. Some of the papers in this volume were originally presented at just such a conference hosted by the Centre for Economic Performance at the London School of Economics (LSE) on 28 September 2001 and organized (beautifully) by Joanna Swaffield of York University. In what follows the conference papers, those published in this volume, and related research are put into context. Section I deals with the thorny matter of coverage and data. The impact of the NMW on the pay distribution, employment and incomes is set out in section II. Some thoughts on the future of the NMW follow in section III.

Suggested Citation

  • David Metcalf, 2002. "The National Minimum Wage: Coverage, Impact and Future," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(supplemen), pages 567-582, December.
    • Handle: RePEc:bla:obuest:v:64:y:2002:i:supplement:p:567-582
    DOI: 10.1111/1468-0084.64.s.1
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    1. Metcalf, David, 1999. "The Low Pay Commission and the National Minimum Wage," Economic Journal, Royal Economic Society, vol. 109(453), pages 46-66, February.
    2. Machin, Stephen & Manning, Alan & Rahman, Lupin, 2002. "Where the minimum wage bites hard: the introduction of the UK national minimum wage to a low wage sector," LSE Research Online Documents on Economics 20070, London School of Economics and Political Science, LSE Library.
    3. Mark B. Stewart, 2002. "Estimating the Impact of the Minimum Wage Using Geographical Wage Variation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(supplemen), pages 583-605, December.
    4. Chris Skinner & Nigel Stuttard & Gabriele Beissel-Durrant & James Jenkins, 2002. "The Measurement of Low Pay in the UK Labour Force Survey," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(s1), pages 653-676, August.
    5. Kirstine Hansen & Stephen Machin, 2002. "Spatial Crime Patterns and the Introduction of the UK Minimum Wage," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(supplemen), pages 677-697, December.
    6. Helen Robinson, 2002. "Wrong Side of the Track? The Impact of the Minimum Wage on Gender Pay Gaps in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(5), pages 417-448, December.
    7. Stephen Bazen & Velayoudom Marimoutou, 2002. "Looking for a Needle in a Haystack? A Re‐examination of the Time Series Relationship between Teenage Employment and Minimum Wages in the United States," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(supplemen), pages 699-725, December.
    8. Sara Connolly & Mary Gregory, 2002. "The National Minimum Wage and Hours of Work: Implications for Low Paid Women," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(s1), pages 607-631, August.
    9. Sara Connolly & Mary Gregory, 2002. "The National Minimum Wage and Hours of Work: Implications for Low Paid Women," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(supplemen), pages 607-631, December.
    10. Helen Robinson, 2005. "Regional evidence on the effect of the national minimum wage on the gender pay gap," Regional Studies, Taylor & Francis Journals, vol. 39(7), pages 855-872.
    11. Brown, W., 2002. "The Operation of the Low Pay Commission," Cambridge Working Papers in Economics 0223, Faculty of Economics, University of Cambridge.
    12. Dickens, Richard & Machin, Stephen & Manning, Alan, 1999. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 1-22, January.
    13. Kirstine Hansen & Stephen Machin, 2002. "Spatial Crime Patterns and the Introduction of the UK Minimum Wage," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(s1), pages 677-697, August.
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    Cited by:

    1. Mirko Draca & Stephen Machin & John Van Reenen, 2011. "Minimum Wages and Firm Profitability," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 129-151, January.
    2. Brian Bell & Stephen Machin, 2018. "Minimum Wages and Firm Value," Journal of Labor Economics, University of Chicago Press, vol. 36(1), pages 159-195.
    3. Rizov, Marian & Croucher, Richard & Lange, Thomas, 2016. "The UK national minimum wage's impact on productivity," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(4), pages 819-835.
    4. Sara Connolly & Mary Gregory, 2002. "The National Minimum Wage and Hours of Work: Implications for Low Paid Women," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(supplemen), pages 607-631, December.
    5. Mark B. Stewart & Joanna K. Swaffield, 2002. "Using the BHPS Wave 9 Additional Questions to Evaluate the Impact of the National Minimum Wage," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(supplemen), pages 633-652, December.
    6. Joanna K. Swaffield, 2014. "Minimum Wage Hikes And The Wage Growth Of Low-Wage Workers," Bulletin of Economic Research, Wiley Blackwell, vol. 66(4), pages 384-405, October.
    7. Peter Dolton, 2012. "The administration and impact of a national minimum wage: lessons for Germany," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(3), pages 201-208, December.

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