Skip to main content
Article thumbnail
Location of Repository

Minimum wages

By Stephen Machin and Alan Manning

Abstract

Debate about the effect of minimum wages on employment in the United Kingdom has not paid much attention to the impact of the existing system of minimum wages, the Wages Council. In this paper, we look at the consequences of the declining importance of the Wages Council in the 1980s for wage inequality and employment in the covered industries. We find that there has been a significant increase in wage inequality as a result of the failure to raise minimum wages in line with earnings, but there is no evidence that the declining minimum produced any beneficial employment effects. If anything, there seems to be a positive correlation between minimum wages and employment, an effect that seems particularly strong in the catering sector

Topics: HD Industries. Land use. Labor
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Year: 1992
OAI identifier: oai:eprints.lse.ac.uk:21048
Provided by: LSE Research Online
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://cep.lse.ac.uk (external link)
  • http://eprints.lse.ac.uk/21048... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.