The UK national minimum wage's impact on productivity

Artikel

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: British Journal of Management ; ISSN: 1467-8551 ; Volume: 27 ; Year: 2016 ; Issue: 4 ; Pages: 819-835 ; Hoboken: Wiley

Classification and Topics

• Classification: Wirtschaft ; Firm Behavior: Empirical Analysis ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; Wages, Compensation, and Labor Costs: General
• Subject: minimum wage ; incentives ; productivity

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Rizov, Marian ; Croucher, Richard ; Lange, Thomas
• Event: Veröffentlichung
• (who): Wiley ; ZBW – Leibniz Information Centre for Economics
• (where): Hoboken
• (when): 2016

Further information

• DOI: https://onlinelibrary.wiley.com/doi/abs/10.1111/1467-8551.12171
• Handle: http://hdl.handle.net/10419/183132
• Last update: 10.03.2025, 11:42 AM CET