Please use this identifier to cite or link to this item: http://bura.brunel.ac.uk/handle/2438/14212
Title: Efficiency wages and the economic effects of the minimum wage: Evidence from a low-wage labour market
Authors: Georgiadis, A
Keywords: Efficiency wages;National minimum wage;Wage-supervision trade-off
Issue Date: 2013
Publisher: Wiley
Citation: Oxford Bulletin of Economics and Statistics, 75(6): pp. 962 - 979, (2013)
Abstract: This article exploits a natural experiment provided by the 1999 introduction of the UK National Minimum Wage (NMW) to test for efficiency wage considerations in a low-wage sector, the UK residential care homes industry. The empirical results provide support to the wage-supervision trade-off prediction of the shirking model and suggest that the NMW may have operated as an efficiency wage in the care homes sector, leading to a reduction in supervision costs. These findings can explain earlier evidence suggesting that although the NMW introduction increased wages dramatically in the care homes sector, it generated only moderate negative employment effects.
URI: http://bura.brunel.ac.uk/handle/2438/14212
DOI: http://dx.doi.org/10.1111/j.1468-0084.2012.00713.x
ISSN: 0305-9049
Appears in Collections:Brunel Business School Research Papers

Files in This Item:
File Description SizeFormat 
FullText.doc264.5 kBMicrosoft WordView/Open


Items in BURA are protected by copyright, with all rights reserved, unless otherwise indicated.