Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/33221
Authors: 
Jones, Melanie K.
Jones, Richard J.
Murphy, Philip D.
Sloane, Peter J.
Year of Publication: 
2005
Series/Report no.: 
IZA Discussion Papers 1690
Abstract: 
An important policy issue is whether the National Minimum Wage (NMW) introduced in Britain in April 1999, is a stepping stone to higher wages or traps workers in a low-wage no-wage cycle. In this paper we utilise the longitudinal element of the Labour Force Survey over the period 1999 to 2003 to model transitions between different labour market states payment at or below the NMW, above the NMW, unemployment and inactivity, using a multinomial logit approach. It appears that for many workers payment at or below the NMW is of relatively short duration and a substantial number move into higher paid jobs.
Subjects: 
national minimum wage
transitions
steady state distributions
JEL: 
J0
J3
J6
Document Type: 
Working Paper

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