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Minimum Wages and the Gender Gap in Pay: New Evidence from the UK and Ireland

Author

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  • Bargain, Olivier

    (Université Montesquieu Bordeaux IV)

  • Doorley, Karina

    (Economic and Social Research Institute, Dublin)

  • Van Kerm, Philippe

    (LISER (CEPS/INSTEAD))

Abstract

Women are disproportionately in low paid work compared to men so, in the absence of rationing effects on their employment, they should benefit the most from minimum wage policies. This study examines the change in the gender wage gap around the introduction of minimum wages in Ireland and the United Kingdom. Using survey data for the two countries, we develop a decomposition of the change in the gender differences in wage distributions around the date of introduction of minimum wages. We separate out 'price' effects attributed to minimum wages from 'employment composition' effects. A significant reduction of the gender gap at low wages is observed after the introduction of the minimum wage in Ireland while there is hardly any change in the UK. Counterfactual simulations show that the difference between countries may be attributed to gender differences in non-compliance with the minimum wage legislation in the UK.

Suggested Citation

  • Bargain, Olivier & Doorley, Karina & Van Kerm, Philippe, 2018. "Minimum Wages and the Gender Gap in Pay: New Evidence from the UK and Ireland," IZA Discussion Papers 11502, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11502
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    1. Amadxarif, Zahid & Angeli, Marilena & Haldane, Andrew G & Zemaityte, Gabija, 2020. "Understanding pay gaps," Bank of England working papers 877, Bank of England.
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    3. Doorley, Karina, 2018. "Taxation, Work and Gender Equality in Ireland," IZA Discussion Papers 11495, Institute of Labor Economics (IZA).
    4. Michelle Barrett & Karina Doorley & Paul Redmond & Barra Roantree, 2022. "How Has the Gender Earnings Gap in Ireland Changed in Thirty Years?," Social Sciences, MDPI, vol. 11(8), pages 1-21, August.

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    More about this item

    Keywords

    minimum wage; gender wage gap; distribution regression;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I2 - Health, Education, and Welfare - - Education
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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