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Evaluating the Impact of a National Minimum Wage: Evidence from a New Survey of Firms

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  • Nolan, Brian

    (ESRI, Dublin)

  • Donal O'Neill

    (NUI Maynooth, Ireland)

Abstract

In April 2000 the Irish government introduced a national minimum wage of £4.40 an hour. This paper uses data from a specially designed panel survey of firms to estimate the labour market effects of this change. Initial results show that employment growth among firms with low wage workers prior to the legislation was not significantly different to that for firms not affected by the legislation. However, this measure of the minimum wage bite is likely to overestimate the number of firms affected by the legislation. When we use a more refined measure of the minimum wage bite, which takes account of general wage growth in the economy we find the minimum wage may have had a statistically significantly negative effect on employment for the small number of firms most severely affected by the legislation.

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Bibliographic Info

Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2002 with number 151.

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Date of creation: 29 Aug 2002
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Handle: RePEc:ecj:ac2002:151

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Web page: http://www.res.org.uk/society/annualconf.asp
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  1. Dickens, R & Machin, S & Manning, A, 1999. "The effects of minimum wages on employment: Theory and evidence from Britain," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
  2. Brown, Charles, 1999. "Minimum wages, employment, and the distribution of income," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 32, pages 2101-2163 Elsevier.
  3. William Wascher & David Neumark, 2000. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Comment," American Economic Review, American Economic Association, vol. 90(5), pages 1362-1396, December.
  4. Daniel Aaronson, 2001. "Price Pass-Through And The Minimum Wage," The Review of Economics and Statistics, MIT Press, vol. 83(1), pages 158-169, February.
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  1. Diskussion:Mindestlohn/Archiv/2008/2. Teilarchiv in Wikipedia (German)
  2. Mindestlohn in Wikipedia (German)

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