A Persistence Model of the National Minimum Wage

32 Pages Posted: 8 Mar 2007

See all articles by Melanie K. Jones

Melanie K. Jones

University of Wales Swansea

Richard J. Jones

University of Wales, Swansea

Philip D. Murphy

Swansea University - School of Business and Economics

Peter J. Sloane

University of Wales, Swansea; IZA Institute of Labor Economics

Date Written: February 2007

Abstract

This paper utilises the panel element of the BHPS (waves 9 to 14) to examine the dynamics of the National Minimum Wage (NMW) introduced to Britain in 1999. Specifically a persistence measure based on a random effects probit model for those affected by the NMW is constructed. The conditional probabilities imply some degree of state dependence, but there is also a considerable amount of turnover from one year to the next among those affected by the NMW.

Keywords: National Minimum Wage, state dependence, wage mobility

JEL Classification: J0, J3, K31

Suggested Citation

Jones, Melanie K. and Jones, Richard J. and Murphy, Philip Daniel and Sloane, Peter J., A Persistence Model of the National Minimum Wage (February 2007). IZA Discussion Paper No. 2595, Available at SSRN: https://ssrn.com/abstract=968954 or http://dx.doi.org/10.2139/ssrn.968954

Melanie K. Jones

University of Wales Swansea ( email )

Singleton Park
Singleton Park
Swansea, Wales SA2 8PP
United Kingdom

Richard J. Jones

University of Wales, Swansea ( email )

Singleton Park
Singleton Park
Swansea, Wales SA2 8PP
United Kingdom

Philip Daniel Murphy

Swansea University - School of Business and Economics ( email )

Singleton Park
Swansea, Wales SA2 8PP SA2 8PP
United Kingdom

Peter J. Sloane (Contact Author)

University of Wales, Swansea ( email )

Singleton Park
Singleton Park
Swansea, Wales SA2 8PP
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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