Machin, Stephen 
ORCID: 0009-0004-8130-2701 and Manning, Alan ORCID: 0000-0002-7884-3580
(1992)
Minimum wages.
CEPDP (80).
London School of Economics and Political Science. Centre for Economic Performance, London, UK.
Abstract
Debate about the effect of minimum wages on employment in the United Kingdom has not paid much attention to the impact of the existing system of minimum wages, the Wages Council. In this paper, we look at the consequences of the declining importance of the Wages Council in the 1980s for wage inequality and employment in the covered industries. We find that there has been a significant increase in wage inequality as a result of the failure to raise minimum wages in line with earnings, but there is no evidence that the declining minimum produced any beneficial employment effects. If anything, there seems to be a positive correlation between minimum wages and employment, an effect that seems particularly strong in the catering sector.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://cep.lse.ac.uk |
| Additional Information: | © 1992 the authors |
| Divisions: | Centre for Economic Performance Economics |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor |
| Date Deposited: | 20 Aug 2008 16:34 |
| Last Modified: | 11 Dec 2024 18:19 |
| URI: | http://eprints.lse.ac.uk/id/eprint/21048 |
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