spatial dependence

Identifying the employment effect of invoking and changing the minimum wage: A spatial analysis of the UK

This paper assesses the impact of the National Minimum Wage (NMW) on employment in the UK over the 1999–2010 period explicitly modelling the effect of the 2008–2010 recession. Identification of invoking a NMW is possible by reference to a pre-period (prior to 1999) without a NMW. Separate identification of the effect of incremental changes (and year interaction effects) in the NMW is facilitated by variation in the bite of the NMW across local labour markets.