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 |
|---|---|
| Pages (from-to) | 616-642 |
| Number of pages | 27 |
| Journal | Industrial Relations: A Journal of Economy and Society |
| Volume | 64 |
| Issue number | 4 |
| Early online date | 28 Jan 2025 |
| DOIs | |
| 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).
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth
Research Groups and Themes
- SPS Centre for the Study of Poverty and Social Justice
- SPS Inequalities and Social Welfare Research Centre
Keywords
- wage growth
- minimum wage
- discrete‐time models
- low pay
- wage progression
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