The UK national minimum wage’s impact on productivity
Rizov, Marian, Croucher, Richard 
ORCID: https://orcid.org/0000-0002-9617-734X 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
[Article]
(doi:10.1111/1467-8551.12171)
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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.
| Item Type: | Article |
|---|---|
| Keywords (uncontrolled): | minimum wage, incentives, productivity, UK |
| Research Areas: | A. > Business School |
| Item ID: | 19004 |
| Notes on copyright: | © 2016 The Authors British Journal of Management published by John Wiley & Sons Ltd on behalf of British Academy of Management
This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made. |
| Useful Links: | |
| Depositing User: | Bernadett Dunn |
| Date Deposited: | 11 Mar 2016 11:48 |
| Last Modified: | 29 Nov 2022 21:31 |
| URI: | https://eprints.mdx.ac.uk/id/eprint/19004 |
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