IDEAS home Printed from https://ideas.repec.org/a/ecj/econjl/v114y2004i494pc84-c86.html
   My bibliography  Save this article

The impact of the national minimum wage on the pay distribution, employment and training

Author

Listed:
  • David Metcalf

Abstract

Britain's first ever national minimum wage (NMW) came into force in April 1999 covering some 5% of workers. Between 1999 and 2002 the NMW rose in line with the growth in average earnings. But for 2003-6 the NMW will be ratcheted up relative to median pay. The evidence shows that between 1998 and 2002 the bottom decile of the pay distribution experienced above average pay rises with no spillover effects further up the distribution. There was no overall employment effect but a small negative impact in the care home sector. The NMW boosts the probability and intensity of training. Copyright 2004 Royal Economic Society.

Suggested Citation

  • David Metcalf, 2004. "The impact of the national minimum wage on the pay distribution, employment and training," Economic Journal, Royal Economic Society, vol. 114(494), pages 84-86, March.
    • Handle: RePEc:ecj:econjl:v:114:y:2004:i:494:p:c84-c86
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michele Campolieti & Morley Gunderson & Byron Lee, 2014. "Minimum Wage Effects On Permanent Versus Temporary Minimum Wage Employment," Contemporary Economic Policy, Western Economic Association International, vol. 32(3), pages 578-591, July.
    2. Tony Fang & Morley Gunderson, 2009. "Minimum Wage Impacts on Older Workers: Longitudinal Estimates from Canada," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 371-387, June.
    3. Pfeifer, Christian & Janssen, Simon & Yang, Philip & Backes-Gellner, Uschi, 2011. "Effects of Training on Employee Suggestions and Promotions in an Internal Labor Market," IZA Discussion Papers 5671, Institute of Labor Economics (IZA).
    4. Alessandra Brito & Miguel Foguel & Celia Kerstenetzky, 2017. "The contribution of minimum wage valorization policy to the decline in household income inequality in Brazil: A decomposition approach," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 40(4), pages 540-575, October.
    5. Dolton, Peter & Bondibene, Chiara Rosazza & Stops, Michael, 2015. "Identifying the employment effect of invoking and changing the minimum wage: A spatial analysis of the UK," Labour Economics, Elsevier, vol. 37(C), pages 54-76.
    6. Fei Peng & Lili Kang, 2013. "Labor Market Institutions and Skill Premiums: An Empirical Analysis on the UK, 1972-2002," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(4), pages 959-982.
    7. Jones, Melanie K. & Jones, Richard J. & Murphy, Philip D. & Sloane, Peter J., 2005. "The Dynamics of the National Minimum Wage: Transitions Between Different Labour Market States," IZA Discussion Papers 1690, Institute of Labor Economics (IZA).
    8. Bruce E. Kaufman, 2010. "Institutional Economics and the Minimum Wage: Broadening the Theoretical and Policy Debate," ILR Review, Cornell University, ILR School, vol. 63(3), pages 427-453, April.
    9. Pfeifer, Christian & Janssen, Simon & Yang, Philip & Backes-Gellner, Uschi, 2010. "Training Participation of an Aging Workforce in an Internal Labor Market," Hannover Economic Papers (HEP) dp-447, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    10. Metcalf, David, 2007. "Why has the British national minimum wage had little or no impact on employment?," LSE Research Online Documents on Economics 19742, London School of Economics and Political Science, LSE Library.
    11. Lesch, Hagen, 2004. "Beschäftigungs- und verteilungspolitische Aspekte von Mindestlöhnen," IW-Trends – Vierteljahresschrift zur empirischen Wirtschaftsforschung, Institut der deutschen Wirtschaft (IW) / German Economic Institute, vol. 31(4), pages 41-50.
    12. Andreas Georgiadis, 2013. "Efficiency Wages and the Economic Effects of the Minimum Wage: Evidence from a Low-Wage Labour Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(6), pages 962-979, December.
    13. Andreas P. Georgiadis, 2006. "Is the Minimum Wage Efficient? Evidence of the Effects of the UK National Minimum Wage in the Residential Care Homes Sector," The Centre for Market and Public Organisation 06/160, The Centre for Market and Public Organisation, University of Bristol, UK.
    14. Salverda, Wiemer & Checchi, Daniele, 2014. "Labour-Market Institutions and the Dispersion of Wage Earnings," IZA Discussion Papers 8220, Institute of Labor Economics (IZA).
    15. Tito Boeri & Jan van Ours, 2013. "The Economics of Imperfect Labor Markets: Second Edition," Economics Books, Princeton University Press, edition 1, number 10142.
    16. Pia Rattenhuber, 2014. "Building the minimum wage: the distributional impact of Germany’s first sectoral minimum wage on wages and hours across different wage bargaining regimes," Empirical Economics, Springer, vol. 46(4), pages 1429-1446, June.
    17. Georgiadis, Andreas, 2008. "Efficiency wages and the economic effects of the minimum wage: evidence from a low-wage labour market," LSE Research Online Documents on Economics 19628, London School of Economics and Political Science, LSE Library.
    18. Robert Elliott & David Bell & Anthony Scott & Ada Ma & Elizabeth Roberts, 2005. "Devolved government and public sector pay reform: Considerations of equity and efficiency," Regional Studies, Taylor & Francis Journals, vol. 39(4), pages 519-539.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:114:y:2004:i:494:p:c84-c86. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.