Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/215310 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 12914
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We use distributional regression analysis to study the impact of a six percent increase in the Irish minimum wage on the distribution of hourly wages and household income. Wage inequality, measured by the ratio of wages in the 90th and 10th percentiles and the 75th and 25th percentiles, decreased by approximately eight percent and four percent respectively. For young workers, aged under 25, the effects were far greater, with a 24 percent reduction in the ratio of wages in the 90th and 10th percentiles. The results point towards wage spillover effects up to the 30th percentile of the wage distribution. We show that minimum wage workers are spread throughout the household income distribution and are often located in high-income households. Therefore, while we observe strong effects on the wage distribution, the impact of a minimum wage increase on the household income distribution is quite limited.
Subjects: 
minimum wage
inequality
wage spillovers
distributional regression
JEL: 
J31
J38
K31
Document Type: 
Working Paper

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