The Effects of Minimum Wages on Wage Dispersion and Employment: Evidence from the U.K. Wages Councils

  title={The Effects of Minimum Wages on Wage Dispersion and Employment: Evidence from the U.K. Wages Councils},
  author={Stephen J. Machin and Alan Manning},
  journal={Industrial \& Labor Relations Review},
  pages={319 - 329}
Using data on Wages Council coverage from the United Kingdom New Earnings Survey, the authors examine the impact of mandated minimum wages on wage dispersion and employment in the United Kingdom in the 1980s. They find evidence that a dramatic decline in the toughness of the regulation imposed by the Wages Councils through the 1980s—a decline, that is, in the level of the minimum wage relative to the average wage—significantly contributed to widening wage dispersion over those years. There is… 

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