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Minimum Wages and the Gender GAP in Pay: New Evidence from the United Kingdom and Ireland

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  • Olivier Bargain
  • Karina Doorley
  • Philippe Van Kerm

Abstract

Women are disproportionately in low‐paid work compared to men so, in the absence of rationing effects on their employment, they should benefit the most from minimum wage policies. This study examines the change in the gender wage gap around the introduction of minimum wages in Ireland and the United Kingdom (U.K.). Using survey data for the two countries, we develop a decomposition of the change in the gender differences in wage distributions around the date of introduction of minimum wages. We separate out “price” effects attributed to minimum wages from “employment composition” effects. A significant reduction of the gender gap at low wages is observed after the introduction of the minimum wage in Ireland, while there is hardly any change in the U.K. Counterfactual simulations show that the difference between countries may be attributed to gender differences in non‐compliance with the minimum wage legislation in the U.K.

Suggested Citation

  • Olivier Bargain & Karina Doorley & Philippe Van Kerm, 2019. "Minimum Wages and the Gender GAP in Pay: New Evidence from the United Kingdom and Ireland," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(3), pages 514-539, September.
  • Handle: RePEc:bla:revinw:v:65:y:2019:i:3:p:514-539
    DOI: 10.1111/roiw.12384
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    File URL: https://doi.org/10.1111/roiw.12384
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    Cited by:

    1. Redmond, Paul & Doorley, Karina & McGuinness, Seamus, 2020. "The Impact of a Minimum Wage Change on the Distribution of Wages and Household Income," IZA Discussion Papers 12914, Institute of Labor Economics (IZA).

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