The impact of the introduction of the UK minimum wage on the employment probabilities of low wage workers

Abstract

This paper uses longitudinal data from three contrasting datasets (matched Labour Force Surveys, the British Household Panel Survey and matched New Earnings Surveys) to estimate the impact of the introduction of the UK minimum wage (in April 1999) on the probability of subsequent employment among those whose wages would have needed to be raised to comply with the minimum. A difference-in-differences estimator is used, based on position in the wage distribution. No significant adverse employment effects are found for any of the four demographic groups considered (adult and youth, men and women) or in any of the three datasets used