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Measuring compliance with minimum wages

Author

Listed:
  • Felix Ritchie

    (University of the West of England)

  • Michail Veliziotis

    (University of Southampton)

  • Hilary Drew

    (University of the West of England)

  • Damian Whittard

    (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

  • Felix Ritchie & Michail Veliziotis & Hilary Drew & Damian Whittard, 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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    Cited by:

    1. Bachmann, Ronald & Boockmann, Bernhard & Gonschor, Myrielle & Kalweit, René & Klauser, Roman & Laub, Natalie & Rulff, Christian & Vonnahme, Christina, 2022. "Auswirkungen des gesetzlichen Mindestlohns auf Löhne und Arbeitszeiten," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 264288.
    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.
    3. Stansbury, Anna, 2024. "Incentives to Comply with the Minimum Wage in the US and UK," IZA Discussion Papers 16882, IZA Network @ LISER.
    4. 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.
    5. 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).
    6. 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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    JEL classification:

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

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