The impact of the national minimum wage on labour productivity in Britain

Croucher, Richard ORCID: https://orcid.org/0000-0002-9617-734X 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 [Article]

Abstract

We examine labour productivity in low-paying sectors of the British economy and find that productivity was positively affected by the national minimum wage’s (NMW) introduction. We calculate firm-specific labour productivity measures and then aggregate them to the level of low-paying sectors. Difference-in-differences analysis shows that, with notable exceptions, aggregate low-paying sector productivity has been significantly positively affected by the NMW. Effects’ magnitudes vary by sector and firm-size group over time.

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