Wage Inequality, Minimum Wage Effects and Spillovers

Mark Stewart

No 270759, Economic Research Papers from University of Warwick - Department of Economics

Abstract: This paper investigates possible spillover effects of the UK minimum wage. The halt in the growth in inequality in the lower half of the wage distribution (as measured by the 50:10 percentile ratio) since the mid 1990s, in contrast to the continued inequality growth in the upper half of the distribution, suggests the possibility of a minimum wage effect and spillover effects on wages above the minimum. This paper analyses individual wage changes, using both a difference-in-differences estimator and a specification involving cross-uprating comparisons, and concludes that there have not been minimum wage spillovers. Since the UK minimum wage has always been below the 10th percentile, this lack of spillovers implies that minimum wage changes have not had an effect on the 50:10 percentile ratio measure of inequality in the lower half of the wage distribution.

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2011-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://ageconsearch.umn.edu/record/270759/files/twerp_965.pdf (application/pdf)
https://ageconsearch.umn.edu/record/270759/files/twerp_965.pdf?subformat=pdfa (application/pdf)

Related works:
Journal Article: Wage inequality, minimum wage effects, and spillovers (2012)
Working Paper: Wage Inequality, Minimum Wage Effects and Spillovers (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:270759

DOI: 10.22004/ag.econ.270759

Access Statistics for this paper

More papers in Economic Research Papers from University of Warwick - Department of Economics
Bibliographic data for series maintained by AgEcon Search ().