Debate on the proposed national minimum wage (NMW) has been dominated by its possible effects on employment. Yet these effects are far from automatic for they depend on the reactiond of firms. Two issues may be highlighted. First, estimates of employment effects turn on assumptions as to how much firms' wage bills would rise which in turn depend on estimating the impact of the NMW on pay structures, in particular differentials. Second, there is the possibility that an NMW would have compensating benefits by increasing efficiency.
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Paper provided by Warwick - School of Industrial & Business in its series Papers with number
59.
Length: 23 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:warwin:59
Contact details of provider: Postal: United Kingdom; University of Warwick, School of Industrial & Business Stu dies. Industrial Relations Research Unit. Coventry CV4 7AL Phone: +44 (0)24 7652 4306 Fax: +44 (0)24 7652 3719 Email: Web page: http://www.wbs.ac.uk/ More information through EDIRC
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