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The Impact of the Introduction of the U.K. Minimum Wage on the Employment Probabilities of Low-Wage Workers

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  • Mark B. Stewart

    (University of Warwick)

Abstract

This paper uses longitudinal data from three contrasting data sets (matched Labor Force Surveys, the British Household Panel Survey, and matched New Earnings Surveys) to estimate the impact of the introduction of the U.K. minimum wage (in April 1999) on the probability of subsequent employment among those whose wages would have needed to be raised to comply with the minimum. A difference-in-differences estimator is used, based on position in the wage distribution. No significant adverse employment effects are found for any of the four demographic groups considered (adult and youth, men and women) or in any of the three data sets used. (JEL: J38, J23) Copyright (c) 2004 by the European Economic Association.

Suggested Citation

  • 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.
    • Handle: RePEc:tpr:jeurec:v:2:y:2004:i:1:p:67-97
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    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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