Do High Minimum Wages Harm the Progression of Minimum Wage Workers?: Evidence From the United Kingdom

Silvia Avram; Susan Harkness

doi:10.1111/irel.12389

Do High Minimum Wages Harm the Progression of Minimum Wage Workers? Evidence From the United Kingdom

Silvia Avram^*, Susan Harkness

^*Corresponding author for this work

Research output: Contribution to journal › Article (Academic Journal) › peer-review

Abstract

Using panel data from the United Kingdom between 2009 and 2019, we study how substantial increases in the real and relative value of the minimum wage impacted on the wage progression of covered workers. We find that progression out of minimum wage jobs is frequent, although most workers remain low paid. Using hazard rate models, we find a short-lived negative effect on progression associated with the introduction of the National Living Wage in 2016. In subsequent years, we find no evidence of significant adverse effects. We find similar results when we model wage growth directly.

Original language	English
Number of pages	27
Journal	Industrial Relations: A Journal of Economy and Society
Early online date	28 Jan 2025
DOIs	https://doi.org/10.1111/irel.12389
Publication status	E-pub ahead of print - 28 Jan 2025

Bibliographical note

Publisher Copyright:
© 2025 The Author(s). Industrial Relations published by Wiley Periodicals LLC on behalf of Regents of the University of California (RUC).

Research Groups and Themes

SPS Centre for the Study of Poverty and Social Justice

Keywords

wage growth
minimum wage
discrete‐time models
low pay
wage progression

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1111/irel.12389Licence: CC BY

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Cite this

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