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A Re-examination of the Impact of the UK National Minimum Wage on Employment

05 November, 2012

Authors

Professor Rebecca Riley
External Authors

Dickens, R.
Related Themes
Labour, Employment and WagesA general consensus has emerged that while the UK National Minimum Wage (NMW) raised the pay of low wage workers it did little to harm their employment prospects. This is in contrast to the US and other countries where a debate over minimum wage effects still rages on. We re-examine the evidence on the introduction of the NMW and look at subsequent increases through the recession focusing on several groups in the labour market. We find a reduction in employment retention among part-time female workers, the group which is most affected by the NMW. These effects deepen in the recession.
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