Rizov, Marian, Croucher, Richard and Lange, Thomas (2016) The UK National Minimum Wage’s impact on productivity. British Journal of Management, 27 (4). pp. 819-835. ISSN 1045-3172
Full content URL: http://doi.org/10.1111/1467-8551.12171
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NMW_productivity_v25mrrc.pdf - Whole Document 637kB |
Item Type: | Article |
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Item Status: | Live Archive |
Abstract
Low pay poses issues for managers internationally. We examine productivity in low-paying sectors in Britain, since the National Minimum Wage’s (NMW) introduction. We use a multiple channel analytical strategy, emphasising the wage-incentives channel and linking it to a model of unobserved productivity. We estimate firm-specific productivity measures and aggregate them to the level of low-paying sectors. Difference-in-differences analysis illustrates that the NMW positively affected aggregate low-paying sector productivity. These findings highlight increased wages’ incentive effects with implications for management practice and public policy since ‘living’ wages may be productivity enhancing.
Keywords: | minimum wage, incentives, productivity, UK, NotOAChecked |
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Subjects: | L Social studies > L140 Econometrics N Business and Administrative studies > N600 Human Resource Management L Social studies > L360 Socio-economics L Social studies > L110 Applied Economics |
Divisions: | Lincoln International Business School |
Related URLs: | |
ID Code: | 22750 |
Deposited On: | 23 Mar 2016 15:15 |
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