Employment, inequality and the UK national minimum wage over the medium-term

Dolton, Peter, Bondibene, Chiara Rosazza and Wadsworth, Jonathan (2012) Employment, inequality and the UK national minimum wage over the medium-term. Oxford Bulletin of Economics and Statistics, 74 (1). pp. 78-106. ISSN 0305-9049

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Abstract

We assess the impact of the national minimum wage (NMW) on employment and inequality in the UK over the decade since its introduction. We evaluate its effects in each year, using an incremental differences-in-differences (IDiD) estimator. Identification is based on variation in the bite of the NMW across local labour markets and the different sized year on year up-ratings. We find that an increased bite of the NMW is associated with falls in lower tail wage inequality. While the average employment effect over the entire period is broadly neutral, there are small but significant positive NMW effects from 2003 onwards.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Depositing User: Stacey Goldup
Date Deposited: 04 Oct 2016 09:36
Last Modified: 04 Oct 2016 09:36
URI: http://sro.sussex.ac.uk/id/eprint/63804
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