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

Research output: Contribution to journalArticle (Academic Journal)peer-review

1 Citation (Scopus)

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 languageEnglish
Pages (from-to)616-642
Number of pages27
JournalIndustrial Relations: A Journal of Economy and Society
Volume64
Issue number4
Early online date28 Jan 2025
DOIs
Publication statusE-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)

  1. SDG 8 - Decent Work and Economic Growth
    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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