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.
difference-in-differences estimator, measurement error, minimum wages, wage growth
384–405
Swaffield, Jo
9e0d6fe1-3219-4d1c-8cff-52c7fac1568f
1 October 2014
Swaffield, Jo
9e0d6fe1-3219-4d1c-8cff-52c7fac1568f
Swaffield, Jo
(2014)
Minimum wage hikes and the wage growth of low-wage workers.
Bulletin of Economic Research, 66 (4), .
(doi:10.1111/boer.12018).
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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e-pub ahead of print date: 15 November 2013
Published date: 1 October 2014
Keywords:
difference-in-differences estimator, measurement error, minimum wages, wage growth
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Local EPrints ID: 453577
URI: http://eprints.soton.ac.uk/id/eprint/453577
ISSN: 0307-3378
PURE UUID: 89c3b991-b715-48ee-91dd-cf89c1d5ad92
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Date deposited: 20 Jan 2022 17:31
Last modified: 17 Mar 2024 04:09
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