The UK Minimum Wage at Age 22: A Regression Discontinuity Approach

Richard Dickens, Rebecca Riley and David Wilkinson

Working Paper Series from Department of Economics, University of Sussex Business School

Abstract: A regression discontinuity approach is used to analyse the effect of the legislated increase in the UK National Minimum Wage (NMW) that occurs at age 22 on various labour market outcomes. Using data from the Labour Force Survey we find a 2- 4% point increase in the employment rate of low skilled individuals. Unemployment declines among men and inactivity among women. We find no such effect before the NMW was introduced and no robust impacts at age 21 or 23 years. Our results are robust to a range of specification tests.

Keywords: Minimum Wage Legislation; Low Wage (search for similar items in EconPapers)
JEL-codes: J31 J38 (search for similar items in EconPapers)
Date: 2011-03
New Economics Papers: this item is included in nep-lab, nep-lma and nep-ltv
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Citations: View citations in EconPapers (5)

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Working Paper: The UK Minimum Wage at Age 22: A Regression Discontinuity Approach (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:sus:susewp:2111

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