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The Impact of the Minimum Wage on the Incidence of Second Job Holding in Britain

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  • Robinson, Helen

    ()
    (Cardiff Business School)

  • Wadsworth, Jonathan

Abstract

The advent of any earnings boost, such as provided by the introduction of a minimum wage, might be expected to reduce the supply of low paid individuals wanting to hold a second job. This paper uses difference-in-differences estimation on a panel of individuals matched across successive Labour Force Surveys around the time of the introduction of the national minimum wage in the United Kingdom in order to estimate the impact of the minimum wage and its subsequent upratings on second job working. There is little evidence to suggest that the extra pay provided by the introduction of the minimum wage was sufficient to affect the incidence of second job holding significantly. However, hours worked in the main job by second job holders may have risen relative to those not covered by the minimum wage; and hours worked in second jobs may have fallen for those whose second job was initially below the minimum.

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Bibliographic Info

Paper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number E2006/14.

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Length: 34 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:cdf:wpaper:2006/14

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Keywords: Second jobs; minimum wages;

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  1. Frederiksen, Anders & Graversen, Ebbe Krogh & Smith, Nina, 2001. "Overtime work, dual job holding and taxation," Working Papers 01-7, University of Aarhus, Aarhus School of Business, Department of Economics.
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  3. Stewart, Mark B., 2002. "The Impact of the Introduction of the UK Minimum Wage on the Employment Probabilities of Low Wage Workers," Royal Economic Society Annual Conference 2002 169, Royal Economic Society.
  4. Richard Dickens & Alan Manning, 2002. "Has The National Minimum Wage Reduced UK Wage Inequality?," CEP Discussion Papers dp0533, Centre for Economic Performance, LSE.
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  7. repec:ese:iserwp:2004-03 is not listed on IDEAS
  8. Bell, David & Hart, Robert A & Wright, Robert E, 1997. "Multiple Job Holding as a 'Hedge' Against Unemployment," CEPR Discussion Papers 1626, C.E.P.R. Discussion Papers.
  9. Susan Averett, 2001. "Moonlighting: multiple motives and gender differences," Applied Economics, Taylor & Francis Journals, vol. 33(11), pages 1391-1410.
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  13. Böheim, René & Taylor, Mark, 2004. "And in the Evening She's a Singer with the Band – Second Jobs, Plight or Pleasure?," IZA Discussion Papers 1081, Institute for the Study of Labor (IZA).
  14. Stewart, Mark B. & Swaffield, Joanna K., 2006. "The other margin : do minimum wages cause working hours adjustments for low-wage workers?," The Warwick Economics Research Paper Series (TWERPS) 746, University of Warwick, Department of Economics.
  15. Aigner, Dennis J., 1973. "Regression with a binary independent variable subject to errors of observation," Journal of Econometrics, Elsevier, vol. 1(1), pages 49-59, March.
  16. Smith Conway, Karen & Kimmel, Jean, 1998. "Male labor supply estimates and the decision to moonlight," Labour Economics, Elsevier, vol. 5(2), pages 135-166, June.
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