Evaluating the Impact of a National Minimum Wage: Evidence from a New Survey of Firms
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.Download Info
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Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2002 with number 151.Length:
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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Keywords:Other versions of this item:
- Nolan, Brian & O'Neill, Donal, 2002. "Evaluating the impact of a national minimum wage : evidence from a new survey of firms," Open Access publications from University College Dublin urn:hdl:10197/1042, University College Dublin.
- NEP-ALL-2002-07-08 (All new papers)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- 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.
- Richard Dickens & Stephen Machin & Alan Manning, 1994. "The Effects of Minimum Wages on Employment: Theory and Evidence from Britain," CEP Discussion Papers dp0183, Centre for Economic Performance, LSE.
- 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.
- 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.
- 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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