The UK minimum wage at age 22: a regression discontinuity approach

Dickens, Richard, Riley, Rebecca and Wilkinson, David (2014) The UK minimum wage at age 22: a regression discontinuity approach. Journal of the Royal Statistical Society: Series A, 177 (1). pp. 95-114. ISSN 1467-985X

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Abstract

A regression discontinuity approach is used to analyse the effect of the legislated increase in the UK national minimum wage that occurs at age 22 years on various labour market outcomes. Using data from the Labour Force Survey we find an increase of 3–4 percentage points in the rate of employment of low skilled individuals. Unemployment declines among men and inactivity among women. We find no such effect before the national minimum wage was introduced and no robust impacts at age 21 or 23 years. Our results are robust to a range of specification tests.

Item Type: Article
Keywords: Labour supply;Minimum wages;Policy evaluation;Regression discontinuity;Youth labour market
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences
Depositing User: Janet Snow
Date Deposited: 14 Mar 2013 12:09
Last Modified: 27 Jun 2014 10:25
URI: http://sro.sussex.ac.uk/id/eprint/40866
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