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The Measurement of Low Pay in the UK Labour Force Survey

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  • Skinner, Chris, et al

Abstract

Consideration of the National Minimum Wage requires estimates of the distribution of hourly pay. The UK Labour Force Survey (LFS) is a key source of such estimates. The approach most frequently adopted by researchers has been to measure hourly earnings from several questions on pay and hours. The Office for National Statistics is now applying a new approach, based on an alternative more direct measurement introduced in March 1999. These two measures do not produce identical values and this paper investigates sources of discrepancies and concludes that the new variable is more accurate. The difficulty with using the new variable is that it is only available on a subset of respondents. An approach is developed in which missing values of the new variable are replaced by imputed values. The assumptions underlying this imputation approach and results of applying it to LFS data are presented. The relation to weighting approaches is also discussed. Copyright 2002 by Blackwell Publishing Ltd

Suggested Citation

  • Skinner, Chris, et al, 2002. " The Measurement of Low Pay in the UK Labour Force Survey," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(0), pages 653-676, Supplemen.
  • Handle: RePEc:bla:obuest:v:64:y:2002:i:0:p:653-76
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    Cited by:

    1. 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.
    2. Jack Britton & Neil Shephard & Anna Vignoles, 2015. "Comparing sample survey measures of English earnings of graduates with administrative data during the Great Recession," IFS Working Papers W15/28, Institute for Fiscal Studies.
    3. Reamonn Lydon & Ian Walker, 2005. "Welfare to work, wages and wage growth," Fiscal Studies, Institute for Fiscal Studies, vol. 26(3), pages 335-370, September.
    4. Esmeralda A. Ramalho & Richard J. Smith, 2013. "Discrete Choice Non-Response," Review of Economic Studies, Oxford University Press, vol. 80(1), pages 343-364.
    5. Anthony B. Atkinson & Chrysa Leventi & Brian Nolan & Holly Sutherland & Iva Tasseva, 2017. "Reducing poverty and inequality through tax-benefit reform and the minimum wage: the UK as a case-study," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(4), pages 303-323, December.
    6. Joanna K. Swaffield, 2014. "Minimum Wage Hikes And The Wage Growth Of Low-Wage Workers," Bulletin of Economic Research, Wiley Blackwell, vol. 66(4), pages 384-405, October.
    7. Denis Heng Yan Leung & Ken Yamada & Biao Zhang, 2015. "Enriching Surveys with Supplementary Data and its Application to Studying Wage Regression," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 42(1), pages 155-179, March.

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