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The Low Pay Commission and the National Minimum Wage

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  • Metcalf, David

Abstract

Great Britain has had statutory regulation of minimum pay for most of this century but never previously had a national minimum wage (NMW). This paper outlines the history of minimum wage regulation culminating in 1997 with the establishment of the Low Pay Commission (LPC). The three key debates within the LPC are analyzed, namely the definition of the wage, what to do about youngsters, and the level to set the NMW. The impact of the NMW on the pay distribution, employment, family incomes, and exchequer finances is set out. The paper concludes that the LPC is a fine example of successful social partnership.

Suggested Citation

  • Metcalf, David, 1999. "The Low Pay Commission and the National Minimum Wage," Economic Journal, Royal Economic Society, vol. 109(453), pages 46-66, February.
    • Handle: RePEc:ecj:econjl:v:109:y:1999:i:453:p:f46-66
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