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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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    Cited by:

    1. Brian Bell & Stephen Machin, 2018. "Minimum Wages and Firm Value," Journal of Labor Economics, University of Chicago Press, vol. 36(1), pages 159-195.
    2. Oliver Falck & Andreas Knabe & Andreas Mazat & Simon Wiederhold, 2013. "Mindestlohn in Deutschland: Wie viele sind betroffen?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(24), pages 68-73, December.
    3. Metcalf, David, 2007. "Why has the British national minimum wage had little or no impact on employment?," LSE Research Online Documents on Economics 19742, London School of Economics and Political Science, LSE Library.
    4. Inmaculada Gonz·lez G∏emes & Carlos PÈrez DomÌnguez, "undated". "Equating out minimum wages in Spain by age," Studies on the Spanish Economy 96, FEDEA.
    5. 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, March.
    6. Machin, Stephen & Manning, Alan & Rahman, Lupin, 2002. "Where the minimum wage bites hard: the introduction of the UK national minimum wage to a low wage sector," LSE Research Online Documents on Economics 20070, London School of Economics and Political Science, LSE Library.
    7. Prowse, Victoria L., 2005. "State Dependence in a Multi-State Model of Employment Dynamics," IZA Discussion Papers 1623, Institute for the Study of Labor (IZA).
    8. William Brown, 2009. "The Process of Fixing the British National Minimum Wage, 1997-2007," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 429-443, June.
    9. Hamilton, Rob, 2005. "Education, Demographics and the Irish Economic Miracle," Quarterly Bulletin Articles, Central Bank of Ireland, pages 103-130, May.
    10. Alana Gilbert & Euan Phimister & Ioannis Theodossiou, 2001. "The Potential Impact of the Minimum Wage in Rural Areas," Regional Studies, Taylor & Francis Journals, vol. 35(8), pages 765-770.
    11. Juan J. Dolado & Florentino Felgueroso & Juan F. Jimeno, 2000. "The Role of the Minimum Wage in the Welfare State: An Appraisal," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 136(III), pages 223-245, September.
    12. Bargain, Olivier & Doorley, Karina & Van Kerm, Philippe, 2018. "Minimum Wages and the Gender Gap in Pay: New Evidence from the UK and Ireland," IZA Discussion Papers 11502, Institute for the Study of Labor (IZA).
    13. Richard Barwell, 2000. "Age structure and the UK unemployment rate," Bank of England working papers 124, Bank of England.
    14. Dolton, Peter & Bondibene, Chiara Rosazza & Stops, Michael, 2015. "Identifying the employment effect of invoking and changing the minimum wage: A spatial analysis of the UK," Labour Economics, Elsevier, vol. 37(C), pages 54-76.
    15. BARGAIN Olivier & DOORLEY Karina & VAN KERM Philippe, 2016. "Minimum wages and the gender gap in pay. Evidence from the UK and Ireland," LISER Working Paper Series 2016-02, LISER.
    16. Phimister, Euan & Theodossiou, Ioannis & Upward, Richard, 2004. "Is It Easier To Escape From Low Pay In Urban Areas? Evidence From The Uk," Discussion Papers 31790, University of Aberdeen Business School, Centre for European Labour Market Research (CELMR).
    17. Andreas P. Georgiadis, 2006. "Is the Minimum Wage Efficient? Evidence of the Effects of the UK National Minimum Wage in the Residential Care Homes Sector," The Centre for Market and Public Organisation 06/160, Department of Economics, University of Bristol, UK.
    18. Brown, W., 2002. "The Operation of the Low Pay Commission," Cambridge Working Papers in Economics 0223, Faculty of Economics, University of Cambridge.
    19. Petrakis, Emmanuel & Vlassis, Minas, 2003. "Minimum wages in national and internationally integrated economies," Journal of Policy Modeling, Elsevier, vol. 25(3), pages 257-265, April.
    20. Victoria Prowse, 2005. "State Dependence in a Multi-state Model of Employment," Economics Papers 2005-W20, Economics Group, Nuffield College, University of Oxford.
    21. Kapelyuk Sergey, 2014. "Impact of minimum wage on income distribution and poverty in Russia," EERC Working Paper Series 14/03e, EERC Research Network, Russia and CIS.

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