Publications

21 Jan 16

Minimum wages and the gender gap in pay. Evidence from the UK and Ireland.

Authors: BARGAIN Olivier, DOORLEY Karina, VAN KERM Philippe.

Abstract: Since women are disproportionately in low paid work, they should benefit the most from minimum wage policies. We exploit the introduction of a national minimum wage (MW) in Ireland (in 2000) and the UK (in 1999) to check this prediction. Using panel survey data, we implement difference-in-difference estimation of a distribution regression model. We separate out "price" effects from "composition" effects. A large reduction of the gap at low wages is found for Ireland, with small spill-over effects further up in the distribution. There is hardly any effect in Britain, largely because of apparent non-compliance with the minimum wage legislation.

Reference: BARGAIN Olivier, DOORLEY Karina, VAN KERM Philippe. Minimum wages and the gender gap in pay. Evidence from the UK and Ireland. LISER, 2016, Working Papers n°2016-02, 37 p.

Keywords:
gender wage gap,
minimum wage,
distribution regression,
UK,
Ireland

JEL: C14, J16.

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