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A Re-examination of the Impact of the UK National Minimum Wage on Employment

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  • Richard Dickens

    ()
    (Department of Economics, University of Sussex, UK)

  • Rebecca Riley

    ()
    (National Institute of Economic and Social Research, UK)

  • David Wilkinson

    ()
    (National Institute of Economic and Social Research, UK)

Abstract

A general consensus has emerged that while the UK National Minimum Wage (NMW) raised the pay of low wage workers it did little to harm their employment prospects. This is in contrast to the US and other countries where a debate over minimum wage effects still rages on. We re-examine the evidence on the introduction of the NMW and look at subsequent increases through the recession focusing on several groups in the labour market. We find a reduction in employment retention among part-time female workers, the group which is most affected by the NMW. These effects deepen in the recession.

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Bibliographic Info

Paper provided by Department of Economics, University of Sussex in its series Working Paper Series with number 4612.

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Date of creation: Dec 2012
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Handle: RePEc:sus:susewp:4612

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Keywords: Minimum Wage; Employment; Wages; Recession;

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  1. Stewart, Mark B, 2002. " Estimating the Impact of the Minimum Wage Using Geographical Wage Variation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(0), pages 583-605, Supplemen.
  2. Peter Dolton & Chiara Rosazza Bondibene, 2012. "The international experience of minimum wages in an economic downturn," Economic Policy, CEPR & CES & MSH, vol. 27(69), pages 99-142, 01.
  3. Mark B. Stewart, 2004. "The Impact of the Introduction of the U.K. Minimum Wage on the Employment Probabilities of Low-Wage Workers," Journal of the European Economic Association, MIT Press, vol. 2(1), pages 67-97, 03.
  4. Richard Dickens & Alan Manning, 2002. "Has the national minimum wage reduced UK wage inequality?," LSE Research Online Documents on Economics 20079, London School of Economics and Political Science, LSE Library.
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