The impact of the National Minimum Wage on labour productivity in Britain

Croucher, Richard and Rizov, Marian (2012) The impact of the National Minimum Wage on labour productivity in Britain. E-Journal of International and Comparative Labour Studies, 1 (3-4). pp. 263-289. ISSN 2280-4056

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Abstract

Our results from difference-in-differences analysis show that, with notable
exceptions, aggregate LPC sector labour productivity has been significantly
positively affected by the NMW in the long run; the effects’ magnitudes
vary by sector. In most of the sectors the impact is statistically significant
and positive with the exception of hairdressing, leisure and agriculture
where the impact is positive but not statistically significant. We also analyse
labour productivity by firm-size groups, according to the LPC classification
and find substantial heterogeneity in responses to the NMW over time as
the increases in productivity are more marked in larger firms.

Keywords:labour productivity, minimum wage, policy impact, UK low pay sectors
Subjects:L Social studies > L140 Econometrics
L Social studies > L110 Applied Economics
L Social studies > L113 Economic Policy
N Business and Administrative studies > N611 Industrial Relations
Divisions:Lincoln International Business School
ID Code:19555
Deposited On:13 Nov 2015 12:34

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