Evaluating the Introduction of a National Minimum Wage: Evidence from a New Survey of Firms in Ireland

Donal O'Neill, Brian Nolan and James Williams

LABOUR, 2006, vol. 20, issue 1, 63-90

Abstract: Abstract. In April 2000 the Irish government introduced a national minimum wage of IR£4.40 (€5.58) an hour. We use data from a specifically designed survey of firms to estimate the employment effects of this change. Employment growth among firms with low‐wage workers prior to the legislation was no different from that of firms not affected by the legislation. A more refined measure of the minimum wage, however, suggests that the legislation may have had a negative effect on employment for the small number of firms most severely affected by the legislation. However, the size of these effects is relatively modest.

Date: 2006
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