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The Impact of the Introduction of the UK Minimum Wage on the Employment Probabilities of Low Wage Workers

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  • Stewart, Mark B.

Abstract

This paper uses longitudinal data from three contrasting datasets (matched Labour Force Surveys, the British Household Panel Survey and matched New Earnings Surveys) to estimate the impact of the introduction of the UK 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-indifferences 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 datasets used.

Suggested Citation

  • Stewart, Mark B., 2002. "The Impact of the Introduction of the UK Minimum Wage on the Employment Probabilities of Low Wage Workers," Economic Research Papers 269404, University of Warwick - Department of Economics.
  • Handle: RePEc:ags:uwarer:269404
    DOI: 10.22004/ag.econ.269404
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    More about this item

    Keywords

    Financial Economics; Labor and Human Capital;

    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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