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The effects of minimum wages on wage dispersion and employment: evidence from the UK wages councils

Machin, S.J.; Manning, A.; (1994) The effects of minimum wages on wage dispersion and employment: evidence from the UK wages councils. Industrial and Labor Relations Review , 47 (2) pp. 319-329. Green open access

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Abstract

Using data on Wages Council coverage from the United Kingdom New Earnings Survey, the authors examine the impact of mandated minimum wages on wage dispersion and employment in the United Kingdom in the 1980s. They find evidence that a dramatic decline in the toughness of the regulation imposed by the Wages Councils through the 1980s-a decline, that is, in the level of the minimum wage relative to the average wage-significantly contributed to widening wage dispersion over those years. There is, however, no evidence of an increase in employment resulting from the weakening bite of the Wages Council minimum pay rates. Instead, consistent with the conclusions of several recent U.S. studies, the findings suggest that the minimum wage had either no effect or a positive effect on employment.

Type: Article
Title: The effects of minimum wages on wage dispersion and employment: evidence from the UK wages councils
Open access status: An open access version is available from UCL Discovery
Publisher version: http://www.ilr.cornell.edu/ilrreview/articles.html
Language: English
Additional information: © Cornell University 1994
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/16940
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