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Minimum wage hikes and the wage growth of low-wage workers

Minimum wage hikes and the wage growth of low-wage workers
Minimum wage hikes and the wage growth of low-wage workers
This paper presents difference-in-differences estimates of the impact of the British minimum wage on the wage growth of low-wage employees. Estimates of the probability of low-wage employees receiving positive wage growth have been significantly increased by the minimum wage upratings or hikes. However, whether the actual wage growth of these workers has been significantly raised or not depends crucially on the magnitude of the minimum wage hike considered. Findings are consistent with employers complying with the legally binding minimum wage but holding down or offsetting the wage growth that they might have awarded in periods of relatively low minimum wage hikes.
Department of Economic and Related Studies, University of York
Swaffield, Jo
9e0d6fe1-3219-4d1c-8cff-52c7fac1568f
Swaffield, Jo
9e0d6fe1-3219-4d1c-8cff-52c7fac1568f

Swaffield, Jo (2012) Minimum wage hikes and the wage growth of low-wage workers Department of Economic and Related Studies, University of York

Record type: Monograph (Working Paper)

Abstract

This paper presents difference-in-differences estimates of the impact of the British minimum wage on the wage growth of low-wage employees. Estimates of the probability of low-wage employees receiving positive wage growth have been significantly increased by the minimum wage upratings or hikes. However, whether the actual wage growth of these workers has been significantly raised or not depends crucially on the magnitude of the minimum wage hike considered. Findings are consistent with employers complying with the legally binding minimum wage but holding down or offsetting the wage growth that they might have awarded in periods of relatively low minimum wage hikes.

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Published date: 1 March 2012

Identifiers

Local EPrints ID: 453129
URI: http://eprints.soton.ac.uk/id/eprint/453129
PURE UUID: 07de2114-f88f-4980-b388-c9aba1be2ace
ORCID for Jo Swaffield: ORCID iD orcid.org/0000-0002-9157-6691

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Date deposited: 08 Jan 2022 22:30
Last modified: 17 Mar 2024 04:09

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Author: Jo Swaffield ORCID iD

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