A persistence model of the national minimum wage
Jones, Melanie K. ; Jones, Richard J. ; Murphy, Philip D. ; Sloane, Peter J.
Institute of Labor Economics, Bonn
IZA - Bonn
2007
29 p.
employment ; low wages ; minimum wage ; statistics
Discussion Paper Series
2595
Wages and wage payment systems
English
Bibliogr.
"This paper utilises the panel element of the BHPS (waves 9 to 14) to examine the dynamics of the National Minimum Wage (NMW) introduced to Britain in 1999. Specifically a persistence measure based on a random effects probit model for those affected by the NMW is constructed. The conditional probabilities imply some degree of state dependence, but there is also a considerable amount of turnover from one year to the next among those affected by the NMW."
Digital
The ETUI is co-funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the ETUI.