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Training and the new minimum wage

Author

Listed:
  • Wiji Arulampalam
  • Alison L. Booth
  • Mark L. Bryan

Abstract

Using the British Household Panel Survey, we estimate the impact of the national minimum wage, introduced in April 1999, on the work-related training of low-wage workers. We use two 'treatment groups'- those workers who explicitly stated they were affected by the new minimum and those workers whose derived 1998 wages were below the minimum. Using difference-in-differences techniques for the period 1998 to 2000, we find no evidence that the introduction of the minimum wage reduced the training of affected workers and some evidence that it increased it. Copyright 2004 Royal Economic Society.

Suggested Citation

  • Wiji Arulampalam & Alison L. Booth & Mark L. Bryan, 2004. "Training and the new minimum wage," Economic Journal, Royal Economic Society, vol. 114(494), pages 87-94, March.
    • Handle: RePEc:ecj:econjl:v:114:y:2004:i:494:p:c87-c94
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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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