Stewart, Mark B. and Swaffield, Joanna, 1970- (2006) The other margin: do minimum wages cause working hours adjustments for low-wage workers? Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers).

Preview

PDF wrap_sTEWART_twerp_746.pdf - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader Download (636Kb)

Abstract

This paper estimates the impact of the introduction of the UK minimum wage on the working hours of low-wage employees using difference-in-differences estimators. The estimates using the employer-based New Earnings Surveys indicate that the introduction of the minimum wage reduced the basic hours of low-wage workers by between 1 and 2 hours per week. The effects on total paid hours are similar (indicating negligible effects on paid overtime) and lagged effects dominate the smaller and less significant initial effects within this. Estimates using the employee-based Labour Force Surveys are typically less significant.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HD Industries. Land use. Labor
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Minimum wage, Hours of labor, Labor laws and legislation, Labor demand, Regression analysis
Series Name:	Warwick economic research papers
Publisher:	University of Warwick, Department of Economics
Place of Publication:	Coventry
Date:	February 2006
Number:	No.746
Number of Pages:	33
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
References:	Brown, Charles (1999), “Minimum wages, employment and the distribution of income”, in O. Ashenfelter and D. Card (eds.), Handbook of Labor Economics, Volume 3, Elsevier. Bound, John, Charles Brown and Nancy Mathiowetz (2001) “Measurement error in survey data”, in J.J. Heckman and E. Leamer (eds.), Handbook of Econometrics, Volume 5 Elsevier. Card, David and Alan B. Krueger (1994), “Minimum wages and employment: A case study of the fast-food industry in New Jersey and Pennsylvania”, American Economic Review, 84, 772-793. Card, David and Alan B. Krueger (2000), “Minimum wages and employment: A case study of the fast-food industry in New Jersey and Pennsylvania: Reply”, American Economic Review, 90, 1397-1420. Connolly Sara and Mary Gregory (2002), “The National Minimum Wage and Hours of Work: Implications for Low Paid Women”, Oxford Bulletin of Economics and Statistics, 64(5), 607-631. Couch Kenneth and David Wittenberg (2001), “The Response of Hours of Work to Increases in the Minimum Wage”, Southern Economic Journal, 68(1), pp.171-177. Currie, Janet and Bruce Fallick (1996) “The minimum wage and the employment of youth”, Journal of Human Resources, 31, 404-428. Dickens, Richard and Mirko Draca (2005), “The employment effects of the October 2003 increase in the national minimum wage”, CEP Discussion Paper No. 693. Dickens, Richard, Stephen Machin and Alan Manning (1999) “The effects of minimum wages on employment: theory and evidence from Britain”, Journal of Labor Economics, 17, 1-22. Dickens, Richard and Alan Manning (2004a), “Spikes and spill-overs: The impact of the national minimum wage on the wage distribution in a low-wage sector”, Economic Journal, 114, C95-101. Dickens, Richard and Alan Manning (2004b), “Has the National Minimum Wage reduced UK wage inequality?” Journal of the Royal Statistical Society, Series A, 167(4), 613-626. Duncan, Gregg and Daniel Hill (1985) "An investigation of the extent and consequences of measurement error in labor-economic survey data" Journal of Labour Economics, vol.3, no.4, 508-532 Hamermesh, Daniel S. (1993) Labor Demand, Princeton: Princeton University Press. Linneman, Peter (1982), “The economic impacts of minimum wage laws: A new look at an old question” Journal of Political Economy, 90, 443-469. Low Pay Commission (1998), The National Minimum Wage, First Report. HMSO. Low Pay Commission (2000), The National Minimum Wage: The Story So Far, Second Report. HMSO. Low Pay Commission (2001), The National Minimum Wage: Making a difference: The Next Steps, Third Report, volumes 1 and 2. HMSO. Machin, Stephen, Alan Manning and Lupin Rahman (2003), “Where the minimum wage bites hard: The introduction of a national minimum wage to a low wage sector” Journal of the European Economic Association, 1(1), 154-180. Manning, Alan (2003), Monopsony in Motion: Imperfect Competition in Labor Markets, Princeton: Princeton University Press. Mellow, Wesley and Hal Sider (1983) "Accuracy of response in labour market surveys; evidence and implications" Journal of Labour Economics, 1(4), 331-344. Michl, Thomas R. (2000), “Can rescheduling explain the New Jersey minimum wage studies?” Eastern Economic Journal, 26, 265-276. Neumark, David, Mark Schweitzer and William Wascher (2004) “The effects of the minimum wage throughout the wage distribution”, Journal of Human Resources, 39(2), 425-450. Neumark, David and William Wascher (2000), “Minimum wages and employment: A case study of the fast-food industry in New Jersey and Pennsylvania: Comment”, American Economic Review, 90, 1362-1396. Stewart Mark B. (2002) “Estimating the impact of the minimum wage using geographical wage variation”, Oxford Bulletin of Economics and Statistics, 64(5), 583-606. Stewart, Mark B. (2004a) "The impact of the introduction of the UK minimum wage on the employment probabilities of low wage workers", Journal of the European Economic Association, 2(1), 67-97. Stewart, Mark B. (2004b) "The employment effects of the national minimum wage", Economic Journal, 114, C110-116. Stewart, Mark B. and Joanna K. Swaffield (2002) “Using the BHPS wave 9 additional questions to evaluate the impact of the national minimum wage”, Oxford Bulletin of Economics and Statistics, 64(5), 633-652. Stuttard Nigel and James Jenkins (2001) “Measuring low pay using the New Earnings Survey and the Labour Force Survey”, Labour Market Trends, January, pp.55-66. Skinner Chris, Nigel Stuttard, Gabriele Beissel and James Jenkins (2002) “The measurement of low pay in the UK Labour Force Survey”, Oxford Bulletin of Economics and Statistics, 64(5), 653-676. Zavodny, Madeline (2000) “The Effect of the minimum wage on employment and hours”, Labour Economics, 7, 729-750.
URI:	http://wrap.warwick.ac.uk/id/eprint/1449

Request changes to a record

Actions (login required)

View Item