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The Effect of Minimum Wages on UK Agriculture

Author

Listed:
  • Richard Dickens
  • Stephen Machin
  • Alan Manning
  • David Metcalf
  • Jonathan Wadsworth
  • S Woodland

Abstract

Since the abolition of the Wages Councils in September 1993, agriculture is the only sector in the UK economy covered by any form of minimum wage legislation. This paper investigates the impact of the system of minimum wages on the level and structure of earnings in agriculture and the level and structure of employment. On wages, our main conclusion is that the minimum wages set by the AWBs are important determinants of the average level and distribution of earnings in UK agriculture. On employment, our main conclusion is that there is no evidence that minimum wages have reduced the level of employment in agriculture. If anything, our estimates imply a weak positive impact of minimum wages on employment. There are no significant differences between men and women. At no point have we have found strong evidence of a negative effect of minimum wages on employment

Suggested Citation

  • Richard Dickens & Stephen Machin & Alan Manning & David Metcalf & Jonathan Wadsworth & S Woodland, 1994. "The Effect of Minimum Wages on UK Agriculture," CEP Discussion Papers dp0204, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp0204
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    Cited by:

    1. Cuong Viet Nguyen, 2013. "The impact of minimum wages on employment of low-wage workers," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(3), pages 583-615, July.
    2. Milner, S., 1994. "Charting the coverage of collective pay setting institutions 1895-1990," LSE Research Online Documents on Economics 20801, London School of Economics and Political Science, LSE Library.
    3. Mr. Michael Sarel, 1997. "How Macroeconomic Factors Affect Income Distribution: The Cross-Country Evidence," IMF Working Papers 1997/152, International Monetary Fund.
    4. Alana Gilbert & Euan Phimister & Ioannis Theodossiou, 2001. "The Potential Impact of the Minimum Wage in Rural Areas," Regional Studies, Taylor & Francis Journals, vol. 35(8), pages 765-770.
    5. Richards, Timothy J. & Paudel, Ujjwol, 2025. "Minimum Wages and Employment," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 361159, Agricultural and Applied Economics Association.
    6. repec:qeh:qehwps:qehwps37 is not listed on IDEAS
    7. Vink, N & Tregurtha, N, 2003. "A Theoretical Perspective On A Minimum Wage In South African Agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 42(01).
    8. Simon Deakin & Francis Green, 2009. "One Hundred Years of British Minimum Wage Legislation," British Journal of Industrial Relations, London School of Economics, vol. 47(2), pages 205-213, June.
    9. Malena Arcidiácono, 2015. "Salario Mínimo y Distribución salarial: Evidencia para Argentina 2003 – 2013," CEDLAS, Working Papers 0192, CEDLAS, Universidad Nacional de La Plata.
    10. S Milner, 1994. "Charting the Coverage of Collective Pay Setting Institutions 1895-1990," CEP Discussion Papers dp0215, Centre for Economic Performance, LSE.
    11. Vera Bitsch & Stefan Mair & Marta M. Borucinska & Christiane A. Schettler, 2017. "Introduction of a Nationwide Minimum Wage: Challenges to Agribusinesses in Germany," Economia agro-alimentare, FrancoAngeli Editore, vol. 19(1), pages 13-34.
    12. Conradie, Beatrice, 2005. "Wages and wage elasticities for wine and table grapes in South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(01), pages 1-19, March.
    13. Nguyen Viet, Cuong, 2010. "The Impact of a Minimum Wage Increase on Employment, Wages and Expenditures of Low-Wage Workers in Vietnam," MPRA Paper 36751, University Library of Munich, Germany, revised 15 Aug 2011.
    14. McDonald, Scott & Punt, Cecilia, 2005. "General equilibrium modelling in South Africa: What the future holds," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(01), pages 1-39, March.
    15. Richard Dickens & Stephen Machin & Alan Manning & David Metcalf & Jonathan Wadsworth & Stephen Woodland, 1995. "The Effect Of Minimum Wages On Uk Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(1), pages 1-19, January.
    16. Abdullah Selim Öztek, 2021. "Minimum Wage Effects under Informality: Evidence from Turkey," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 35(2), pages 98-136.

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