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The Potential Impact of the Minimum Wage in Rural Areas

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  • Alana Gilbert
  • Euan Phimister
  • Ioannis Theodossiou

Abstract

This article explores the extent to which the potential impact of the national minimum wage might differ in rural areas. Using pre-1999 data from the British Household Panel Survey, a number of dimensions of the policy's potential impact in rural areas are considered, in particular, the number of workers affected, their typical characteristics, and the effects on pay inequality and household income distribution. The results show that for the majority of rural areas that are accessible to urban labour markets, the impact is likely to be broadly similar. In contrast, the potential impacts, and particularly the distributional effects, of the national minimum wage are found to be greatest in remoter rural areas.

Suggested Citation

  • Alana Gilbert & Euan Phimister & Ioannis Theodossiou, 2001. "The Potential Impact of the Minimum Wage in Rural Areas," Regional Studies, Taylor & Francis Journals, vol. 35(8), pages 765-770.
    • Handle: RePEc:taf:regstd:v:35:y:2001:i:8:p:765-770
    DOI: 10.1080/00343400120084759
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    References listed on IDEAS

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    1. Richard Dickens & Stephen Machin & Alan Manning, 1994. "The Effects of Minimum Wages on Employment: Theory and Evidence from the US," NBER Working Papers 4742, National Bureau of Economic Research, Inc.
    2. Richard Dickens & Stephen Machin & Alan Manning & David Metcalf & Jonathan Wadsworth & Stephen Woodland, 1995. "The Effect Of Minimum Wages On Uk Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 1-19, January.
    3. Metcalf, David, 1999. "The Low Pay Commission and the National Minimum Wage," Economic Journal, Royal Economic Society, vol. 109(453), pages 46-66, February.
    4. Euan Phimister & Richard Upward & Esperanza Vera-Toscano, 2000. "The Dynamics of Low Income in Rural Areas," Regional Studies, Taylor & Francis Journals, vol. 34(5), pages 407-417.
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    Cited by:

    1. 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.
    2. McGuinness, Seamus & Redmond, Paul & Delaney, Judith, 2019. "The prevalence and effect on hours worked of the minimum wage in Ireland: A sectoral and regional analysis," Research Series, Economic and Social Research Institute (ESRI), number RS93, June.
    3. Otterby, Dawn & Crawley, Andrew & Gabe, Todd, 2023. "Effects of the Minimum Wage on U.S. County Labor Markets," MPRA Paper 116162, University Library of Munich, Germany.
    4. Maoyong Fan & Anita Alves Pena, 2019. "Do minimum wage laws affect those who are not covered? Evidence from agricultural and non-agricultural workers," PLOS ONE, Public Library of Science, vol. 14(10), pages 1-20, October.
    5. Anita Alves Pena, 2013. "Do Minimum Wage Laws Affect People Who Are Not Covered? Evidence from Documented and Undocumented, Hourly and Piece Rate Workers in U.S. Agriculture," Upjohn Working Papers 13-194, W.E. Upjohn Institute for Employment Research.
    6. Vanesa Jorda & Jose M. Alonso, 2020. "What works to mitigate and reduce relative (and absolute) inequality?: A systematic review," WIDER Working Paper Series wp-2020-152, World Institute for Development Economic Research (UNU-WIDER).

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