Minimum Wage Non-Compliance: Evidence from Ireland

Seamus McGuinness, Paul Redmond and Judith Delaney

No 12884, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We use a unique question from the Irish Labour Force Survey that captures the reasons for workers being paid below the minimum wage. Compared to existing work, this allows us to more precisely identify sub-minimum wage workers. We find that 5.6 percent of minimum wage workers are paid below the minimum wage for reasons other than those permitted under legislation. This is considerably lower than estimates reported in the existing literature.

Keywords: minimum wage; non-compliance (search for similar items in EconPapers)
JEL-codes: J22 J23 J31 J32 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2020-01
New Economics Papers: this item is included in nep-eur
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Published - published as 'Minimum Wage Non-Compliance' in: Applied Economics Letters, 2020, 27 (20), 1663 - 1666

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