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Minimum Wage Non-Compliance: Evidence from Ireland

Author

Listed:
  • McGuinness, Seamus

    (Economic and Social Research Institute, Dublin)

  • Redmond, Paul

    (ESRI, Dublin)

  • Delaney, Judith M.

    (University of Bath)

Abstract

We use a unique question from the Irish Labour Force Survey that captures the reasons for workers being paid below the minimum wage. Compared to existing work, this allows us to more precisely identify sub-minimum wage workers. We find that 5.6 percent of minimum wage workers are paid below the minimum wage for reasons other than those permitted under legislation. This is considerably lower than estimates reported in the existing literature.

Suggested Citation

  • McGuinness, Seamus & Redmond, Paul & Delaney, Judith M., 2020. "Minimum Wage Non-Compliance: Evidence from Ireland," IZA Discussion Papers 12884, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12884
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    More about this item

    Keywords

    minimum wage; non-compliance;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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