Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/183132
Authors: 
Rizov, Marian
Croucher, Richard
Lange, Thomas
Year of Publication: 
2016
Citation: 
[Journal:] British Journal of Management [ISSN:] 1467-8551 [Volume:] 27 [Issue:] 4 [Pages:] 819-835
Abstract: 
Low pay poses issues for managers internationally. We examine productivity in low-paying sectors in Britain, since the National Minimum Wage’s (NMW) introduction. We use a multiple channel analytical strategy, emphasising the wage-incentives channel and linking it to a model of unobserved productivity. We estimate firm-specific productivity measures and aggregate them to the level of low-paying sectors. Difference-in-differences analysis illustrates that the NMW positively affected aggregate low-paying sector productivity. These findings highlight increased wages’ incentive effects with implications for management practice and public policy since ‘living’ wages may be productivity enhancing.
Subjects: 
minimum wage
incentives
productivity
UK
JEL: 
D22
D24
J30
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Manuscript Version (Preprint)

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