IDEAS home Printed from https://ideas.repec.org/a/bla/brjirl/v52y2014i3p499-520.html
   My bibliography  Save this article

Does the UK Minimum Wage Reduce Employment? A Meta-Regression Analysis

Author

Listed:
  • Megan Linde Leonard
  • T. D. Stanley
  • Hristos Doucouliagos

Abstract

The employment effect from raising the minimum wage has long been studied but remains in dispute. Our meta-analysis of 236 estimated minimum wage elasticities and 710 partial correlation coefficients from 16 UK studies finds no overall practically significant adverse employment effect. Unlike US studies, there seems to be little, if any, overall reporting bias. Multivariate meta-regression analysis identifies several research dimensions that are associated with differential employment effects. In particular, the residential home care industry may exhibit a genuinely adverse employment effect.

Suggested Citation

  • Megan Linde Leonard & T. D. Stanley & Hristos Doucouliagos, 2014. "Does the UK Minimum Wage Reduce Employment? A Meta-Regression Analysis," British Journal of Industrial Relations, London School of Economics, vol. 52(3), pages 499-520, September.
  • Handle: RePEc:bla:brjirl:v:52:y:2014:i:3:p:499-520
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/bjir.12031
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sara Lemos, 2008. "A Survey Of The Effects Of The Minimum Wage On Prices," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 187-212, February.
    2. Lars P. Feld & Jost H. Heckemeyer, 2011. "Fdi And Taxation: A Meta‐Study," Journal of Economic Surveys, Wiley Blackwell, vol. 25(2), pages 233-272, April.
    3. T. D. Stanley & Stephen B. Jarrell, 2005. "Meta-Regression Analysis: A Quantitative Method of Literature Surveys," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 299-308, July.
    4. T.D. Stanley & Hristos Doucouliagos & Margaret Giles & Jost H. Heckemeyer & Robert J. Johnston & Patrice Laroche & Jon P. Nelson & Martin Paldam & Jacques Poot & Geoff Pugh & Randall S. Rosenberger & , 2013. "Meta-Analysis Of Economics Research Reporting Guidelines," Journal of Economic Surveys, Wiley Blackwell, vol. 27(2), pages 390-394, April.
    5. David Neumark & William L. Wascher, 2008. "Minimum Wages," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262141027, March.
    6. Doucouliagos, Chris & Stanley, T.D. & Giles, Margaret, 2012. "Are estimates of the value of a statistical life exaggerated?," Journal of Health Economics, Elsevier, vol. 31(1), pages 197-206.
    7. De Long, J Bradford & Lang, Kevin, 1992. "Are All Economic Hypotheses False?," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1257-1272, December.
    8. Moore, Thomas Gale, 1971. "The Effect of Minimum Wages on Teenage Unemployment Rates," Journal of Political Economy, University of Chicago Press, vol. 79(4), pages 897-902, July-Aug..
    9. Eric Krassoi Peach & T. Stanley, 2009. "Efficiency Wages, Productivity and Simultaneity: A Meta-Regression Analysis," Journal of Labor Research, Springer, vol. 30(3), pages 262-268, September.
    10. Mincer, Jacob, 1976. "Unemployment Effects of Minimum Wages," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 87-104, August.
    11. Jon Nelson & Peter Kennedy, 2009. "The Use (and Abuse) of Meta-Analysis in Environmental and Natural Resource Economics: An Assessment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(3), pages 345-377, March.
    12. Tomáš Havránek, 2010. "Rose effect and the euro: is the magic gone?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(2), pages 241-261, June.
    13. Hristos Doucouliagos & T. D. Stanley, 2009. "Publication Selection Bias in Minimum‐Wage Research? A Meta‐Regression Analysis," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 406-428, June.
    14. McCloskey, Donald N, 1985. "The Loss Function Has Been Mislaid: The Rhetoric of Significance Tests," American Economic Review, American Economic Association, vol. 75(2), pages 201-205, May.
    15. Mark B. Stewart & Joanna K. Swaffield, 2008. "The Other Margin: Do Minimum Wages Cause Working Hours Adjustments for Low‐Wage Workers?," Economica, London School of Economics and Political Science, vol. 75(297), pages 148-167, February.
    16. Simon Deakin & Francis Green, 2009. "One Hundred Years of British Minimum Wage Legislation," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 205-213, June.
    17. 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.
    18. T. D. Stanley, 2001. "Wheat from Chaff: Meta-analysis as Quantitative Literature Review," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 131-150, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Salverda, Wiemer & Checchi, Daniele, 2014. "Labour-Market Institutions and the Dispersion of Wage Earnings," IZA Discussion Papers 8220, Institute of Labor Economics (IZA).
    2. repec:eee:wdevel:v:103:y:2018:i:c:p:60-71 is not listed on IDEAS
    3. Monastiriotis, Vassilis & Martelli, Angelo, 2019. "Crisis, adjustment and resilience in the Greek labour market: an unemployment decomposition approach," LSE Research Online Documents on Economics 100402, London School of Economics and Political Science, LSE Library.
    4. Giotis, Georgios & Chletsos, Michael, 2015. "Is there publication selection bias in minimum wage research during the five-year period from 2010 to 2014?," Economics Discussion Papers 2015-58, Kiel Institute for the World Economy (IfW).
    5. Antoine Cazals & Pierre Mandon, 2015. "Political Budget Cycles: Manipulation of Leaders or Bias from Research? A Meta-Regression Analysis," Working Papers halshs-01238883, HAL.
    6. Neumark, David, 2018. "The Econometrics and Economics of the Employment Effects of Minimum Wages: Getting from Known Unknowns to Known Knowns," IZA Discussion Papers 11999, Institute of Labor Economics (IZA).
    7. Bernhard Schütz, 2018. "Employment and the minimum wage: A pluralist approach," Economics working papers 2018-07, Department of Economics, Johannes Kepler University Linz, Austria.
    8. repec:esr:resser:bkmnext354 is not listed on IDEAS
    9. Antoine Cazals & Pierre Mandon, 2016. "Political Budget Cycles: Manipulation from Leaders or Manipulation from Researchers? Evidence from a Meta-Regression Analysis," Working Papers halshs-01320586, HAL.
    10. McGuinness, Seamus & Redmond, Paul, 2018. "Estimating the effect of an increase in the minimum wage on hours worked and employment in Ireland," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT354.
    11. Alexandros Karakitsios & Manos Matsaganis, 2018. "Minimum Wage Effects on Poverty and Inequality," DEOS Working Papers 1801, Athens University of Economics and Business.
    12. repec:esr:resser:bkmnext327 is not listed on IDEAS
    13. repec:wly:econjl:v:127:y:2017:i:605:p:f236-f265 is not listed on IDEAS
    14. David Neumark, 2018. "The Econometrics and Economics of the Employment Effects of Minimum Wages: Getting from Known Unknowns to Known Knowns," CESifo Working Paper Series 7386, CESifo Group Munich.
    15. repec:eee:ecmode:v:64:y:2017:i:c:p:270-287 is not listed on IDEAS
    16. Nazila Alinaghi & W. Robert Reed, 2016. "Meta-Analysis and Publication Bias: How Well Does the FAT-PET-PEESE Procedure Work?," Working Papers in Economics 16/26, University of Canterbury, Department of Economics and Finance.
    17. Manning, Alan, 2016. "The elusive employment effect of the minimum wage," LSE Research Online Documents on Economics 67646, London School of Economics and Political Science, LSE Library.
    18. repec:bla:jecsur:v:31:y:2017:i:4:p:961-987 is not listed on IDEAS
    19. Markus Hang & Jerome Geyer‐Klingeberg & Andreas Rathgeber & Stefan Stöckl, 2018. "Economic Development Matters: A Meta‐Regression Analysis on the Relation between Environmental Management and Financial Performance," Journal of Industrial Ecology, Yale University, vol. 22(4), pages 720-744, August.
    20. Antoine CAZALS & Pierre MANDON, 2016. "Political Budget Cycles: Manipulation from Leaders or Manipulation from Researchers? Evidence from a Meta-Regression Analysis," Working Papers 201609, CERDI.
    21. Chris Doucouliagos, 2016. "Meta-regression analysis: Producing credible estimates from diverse evidence," IZA World of Labor, Institute of Labor Economics (IZA), pages 320-320, November.
    22. Chletsos, Michael & Giotis, Georgios P., 2015. "The employment effect of minimum wage using 77 international studies since 1992: A meta-analysis," MPRA Paper 61321, University Library of Munich, Germany.
    23. McVicar, Duncan & Park, Andrew & McGuinness, Seamus, 2018. "Exploiting the Irish Border to Estimate Minimum Wage Impacts in Northern Ireland," IZA Discussion Papers 11585, Institute of Labor Economics (IZA).
    24. repec:wly:econjl:v::y:2017:i:605:p:f236-f265 is not listed on IDEAS
    25. Vassilis Monastiriotis & Angello Martelli, 2019. "Crisis, adjustment and resilience in the Greek labour market: an unemployment decomposition approach," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 134, Hellenic Observatory, LSE.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:brjirl:v:52:y:2014:i:3:p:499-520. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: http://edirc.repec.org/data/lsepsuk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.