Using the BHPS Wave 9 Additional Questions to Evaluate the Impact of the National Minimum Wage

Abstract

This paper presents evidence on the impact of the introduction of the National Minimum Wage using specially designed questions added to wave 9 of the British Household Panel Survey. New direct information on the basic hourly wage rate of hourly paid employees demonstrates the almost complete truncation and 'spike' at 3.60 GBP. The paper presents an analysis of the causes of the differences between hourly wage constructions, and of who has benefited from the introduction of the minimum wage and by how much, and a brief summary of the findings from the other minimum wage questions added to wave 9. Copyright 2003 Blackwell Publishing Ltd.