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

Author

Listed:
  • Robinson, Helen

    (Cardiff University)

  • Wadsworth, Jonathan

    (Royal Holloway, University of London)

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.

Suggested Citation

  • Robinson, Helen & Wadsworth, Jonathan, 2006. "The Impact of the Minimum Wage on the Incidence of Second Job Holding in Britain," IZA Discussion Papers 2445, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2445
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    References listed on IDEAS

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    Cited by:

    1. Mark B. Stewart, 2012. "Wage inequality, minimum wage effects, and spillovers," Oxford Economic Papers, Oxford University Press, vol. 64(4), pages 616-634, October.
    2. Stewart, Mark, 2011. "Quantile estimates of counterfactual distribution shifts and the impact of minimum wage increases on the wage distribution," The Warwick Economics Research Paper Series (TWERPS) 958, University of Warwick, Department of Economics.
    3. Pouliakas, Konstantinos & Panos, Georgios & Zangelidis, Alexandros, 2009. "The Inter-Related Dynamics of Dual Job Holding, Human Capital and Occupational Choice," MPRA Paper 16859, University Library of Munich, Germany.
    4. Konstantinos Pouliakas & Wieteke S. Conen, 2023. "Multiple job-holding: Career pathway or dire straits?," IZA World of Labor, Institute of Labor Economics (IZA), pages 3562-3562, December.
    5. Georgios A. Panos & Konstantinos Pouliakas & Alexandros Zangelidis, 2014. "Multiple Job Holding, Skill Diversification, and Mobility," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(2), pages 223-272, April.

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    More about this item

    Keywords

    minimum wages; second jobs;

    JEL classification:

    • 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

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