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Measuring compliance with minimum wages

Author

Listed:
  • Ritchie, Felix

    (University of the West of England)

  • Veliziotis, Michail

    (University of Southampton)

  • Drew, Hilary

    (University of the West of England)

  • Whittard, Damian

    (University of the West of England)

Abstract

Identifying genuine underpayment of minimum wages is not straightforward. Some well-known statistical issues affect the measurement of compliance rates, but factors such as processing or behavioural influences amongst respondents can also have an impact. We study the quantitative measurement of non-compliance with the minimum wage, using UK apprentices (who have particularly high non-compliance rates) as a case study. We show that understanding the institutional and behavioural context can be invaluable, as can triangulation of different sources. While the binary nature of compliance makes such problems easier to identify and evaluate, this analysis holds wider lessons for the understanding of the characteristics of large and complex datasets.

Suggested Citation

  • Ritchie, Felix & Veliziotis, Michail & Drew, Hilary & Whittard, Damian, 2017. "Measuring compliance with minimum wages," Journal of Economic and Social Measurement, IOS Press, issue 3-4, pages 249-270.
  • Handle: RePEc:ris:iosjes:0075
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    References listed on IDEAS

    as
    1. Hiroyuki Yamada, 2012. "Non-compliance with the Minimum Wage Law when Completely New Minimum Wage Laws Are Established: The Case of South Africa," African Development Review, African Development Bank, vol. 24(1), pages 41-51.
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    Cited by:

    1. Bachmann, Ronald & Bonin, Holger & Boockmann, Bernhard & Demir, Gökay & Felder, Rahel & Isphording, Ingo E. & Kalweit, René & Laub, Natalie & Vonnahme, Christina & Zimpelmann, Christian, 2020. "Auswirkungen des gesetzlichen Mindestlohns auf Löhne und Arbeitszeiten," IZA Research Reports 96, Institute of Labor Economics (IZA).
    2. Bachmann, Ronald & Bonin, Holger & Boockmann, Bernhard & Demir, Gökay & Felder, Rahel & Isphording, Ingo & Kalweit, René & Laub, Natalie & Vonnahme, Christina & Zimpelmann, Christian, 2020. "Auswirkungen des gesetzlichen Mindestlohns auf Löhne und Arbeitszeiten: Studie im Auftrag der Mindestlohnkommission," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 222998, November.
    3. Andrea Garnero, 2018. "The dog that barks doesn’t bite: coverage and compliance of sectoral minimum wages in Italy," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-24, December.
    4. Koch, Andreas & Kirchmann, Andrea & Reiner, Marcel & Scheu, Tobias & Zühlke, Anne & Bonin, Holger, 2020. "Verhaltensmuster von Betrieben und Beschäftigten im Kontext des gesetzlichen Mindestlohns," IZA Research Reports 97, Institute of Labor Economics (IZA).
    5. Dütsch Matthias & Himmelreicher Ralf & Ohlert Clemens, 2019. "Calculating Gross Hourly Wages – the (Structure of) Earnings Survey and the German Socio-Economic Panel in Comparison," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(2), pages 243-276, April.

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      More about this item

      Keywords

      Minimum wage; non-compliance; measurement error; data qualityJEL codes: C18; C55; C81; C83; J31; J38;
      All these keywords.

      JEL classification:

      • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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