Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/302649 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17132
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
In April 2016, a National Living Wage replaced the National Minimum Wage for employees in the UK aged 25 and above, raising their statutory wage floor by 50 pence per hour. This uprating was almost double any in the previous decade and expanded the share of jobs covered by the wage floor by around 50%. Using linked employer-employee data, we examine the effect of this policy on the propensity for minimum-wage employees to change firms. We find no evidence that the substantial compression at the bottom of the wage distribution affected the average rates of year-to-year cross-firm mobility among low-paid workers. While past studies have suggested relatively benign effects of UK minimum wage policy on employment levels, our findings suggest that this also applies to employment dynamics and the aggregate reallocation of workers across firms.
Subjects: 
national minimum wage
on-the-job search
low pay
living wage
UK labour
JEL: 
J23
J38
J68
J88
Document Type: 
Working Paper

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