Minimum wage non-compliance

Seamus McGuinness, Paul Redmond and Judith Delaney

Applied Economics Letters, 2020, vol. 27, issue 20, 1663-1666

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.

Date: 2020
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DOI: 10.1080/13504851.2020.1711503

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