Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/305733 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 17291
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
The Annual Survey of Hours and Earnings (ASHE) is based on an annual one per cent sample of employee jobs and provides many of the UK's official earnings statistics. These statistics are generated using official weights designed to make the achieved sample in each year representative of the population of employee jobs in Britain by gender, age, occupation, and region. However, we find that jobs in small, young, private-sector organisations remain under-represented after weighting. Additionally, there is evidence of systematic year-to-year longitudinal attrition among employees who remain in scope, for which no official weighting adjustment exists. We develop new weights to address these issues, demonstrating their importance through policy-relevant examples. Our new estimates suggest that the bite of the National Living Wage is greater, and that progress toward the target for eradicating low pay has been faster, than previously understood.
Subjects: 
earnings
non-response bias
attrition
survey weighting
low pay
national living wage
JEL: 
C81
C83
J31
Document Type: 
Working Paper

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