Wednesday 29 August 2018

Changing the structure of minimum wages: Firm adjustment and wage spillovers

a column by Giulia Giupponi and Stephen Machin for VOX: CEPR’s Policy Portal

n 2016 the National Living Wage in the UK raised the minimum hourly wage for workers aged 25 and over.

The column uses data from English care homes to analyse the impact of this policy, finding that the main non-wage effect has been a deterioration in quality of care. Younger colleagues also received wage rises, which seems to reflect a preference for fairness among employers.

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