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A Re-examination of the Impact of the UK National Minimum Wage on Employment

Author

Listed:
  • Richard Dickens

    () (Department of Economics, University of Sussex, UK)

  • Rebecca Riley

    () (National Institute of Economic and Social Research, UK)

  • David Wilkinson

    () (National Institute of Economic and Social Research, UK)

Abstract

A general consensus has emerged that while the UK National Minimum Wage (NMW) raised the pay of low wage workers it did little to harm their employment prospects. This is in contrast to the US and other countries where a debate over minimum wage effects still rages on. We re-examine the evidence on the introduction of the NMW and look at subsequent increases through the recession focusing on several groups in the labour market. We find a reduction in employment retention among part-time female workers, the group which is most affected by the NMW. These effects deepen in the recession.

Suggested Citation

  • Richard Dickens & Rebecca Riley & David Wilkinson, 2012. "A Re-examination of the Impact of the UK National Minimum Wage on Employment," Working Paper Series 4612, Department of Economics, University of Sussex.
  • Handle: RePEc:sus:susewp:4612
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    File URL: http://www.sussex.ac.uk/economics/documents/wps-46-2012.pdf
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    References listed on IDEAS

    as
    1. Peter Dolton & Chiara Rosazza Bondibene & Jonathan Wadsworth, 2012. "Employment, Inequality and the UK National Minimum Wage over the MediumÔÇÉTerm," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(1), pages 78-106, February.
    2. Richard Dickens & Alan Manning, 2004. "Has the national minimum wage reduced UK wage inequality?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 167(4), pages 613-626.
    3. 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.
    4. Stewart, Mark B, 2002. " Estimating the Impact of the Minimum Wage Using Geographical Wage Variation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(0), pages 583-605, Supplemen.
    5. Peter Dolton & Chiara Rosazza Bondibene, 2012. "The international experience of minimum wages in an economic downturn," Economic Policy, CEPR;CES;MSH, vol. 27(69), pages 99-142, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Seltzer, Andrew & Borland, Jeff, 2016. "The Impact of the 1896 Factory and Shops Act on Victorian Labour Markets," IZA Discussion Papers 10388, Institute for the Study of Labor (IZA).
    2. Roy E. Bailey & Timothy J. Hatton & Kris Inwood, 2016. "Atmospheric Pollution and Child Health in Late Nineteenth Century Britain," CEH Discussion Papers 052, Centre for Economic History, Research School of Economics, Australian National University.
    3. Jan Fidrmuc & J. D. Tena, 2013. "National Minimum Wage and Employment of Young Workers in the UK," CESifo Working Paper Series 4286, CESifo Group Munich.
    4. Wannaphong Durongkaveroj, 2017. "Minimum Wage and Lives of the Poor: Evidence from Thailand," PIER Discussion Papers 76, Puey Ungphakorn Institute for Economic Research, revised Nov 2017.
    5. repec:esr:resser:bkmnext332 is not listed on IDEAS
    6. Riley, Rebecca & Rosazza Bondibene, Chiara, 2017. "Raising the standard: Minimum wages and firm productivity," Labour Economics, Elsevier, vol. 44(C), pages 27-50.
    7. Rebecca Riley & Chiara Rosazza-Bondibene, 2015. "Raising the Standard: Minimum Wages and Firm Productivity," National Institute of Economic and Social Research (NIESR) Discussion Papers 449, National Institute of Economic and Social Research.
    8. Cai, Lixin & Mavromaras, Kostas G. & Sloane, Peter J., 2016. "Low Paid Employment in Britain: Estimating State-Dependence and Stepping Stone Effects," IZA Discussion Papers 9633, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Minimum Wage; Employment; Wages; Recession;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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