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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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    References listed on IDEAS

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    1. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
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    13. Stephen Machin & Alan Manning, 1994. "The Effects of Minimum Wages on Wage Dispersion and Employment: Evidence from the U.K. Wages Councils," ILR Review, Cornell University, ILR School, vol. 47(2), pages 319-329, January.
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    Cited by:

    1. Malena Arcidiácono, 2015. "Salario Mínimo y Distribución salarial: Evidencia para Argentina 2003 – 2013," CEDLAS, Working Papers 0192, CEDLAS, Universidad Nacional de La Plata.
    2. S Milner, 1994. "Charting the Coverage of Collective Pay Setting Institutions 1895-1990," CEP Discussion Papers dp0215, Centre for Economic Performance, LSE.
    3. 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(1), pages 1-39, March.
    4. 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.
    5. Michael Sarel, 1997. "How Macroeconomic Factors Affect Income Distribution; The Cross-Country Evidence," IMF Working Papers 1997/152, International Monetary Fund.
    6. 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.
    7. Frances Stewart, 2003. "Income distribution and development," Chapters, in: John Toye (ed.), Trade and Development, chapter 10, Edward Elgar Publishing.
    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. 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.
    10. 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(1).
    11. 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(1), pages 1-19, March.
    12. 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.

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