The Uk Minimum Wage at 22 Years of Age: A Regression Discontinuity Approach

Dickens, Richard; Riley, Rebecca; Wilkinson, David

doi:10.1111/rssa.12003

Cited by 32 publications

(50 citation statements)

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“…This assumption is however likely to be violated, since employers are shown to anticipate the increased labor costs and terminate the minimum wage contracts before workers' next birthdays. The positive employment effect found by Dickens, Riley, and Wilkinson (2014) may be therefore an artifact of increased job separation rate prior to the discontinuity, and the consecutive spike of job accessions, partially driven by the re-employment of those workers who have lost their jobs due to the minimum wage change. For this reason, the commentary of employment effects is restricted to descriptive analysis.…”

Section: Job Accessions and Employment Stocksmentioning

confidence: 99%

“…Being subject to the reduced minimum wage, the youth job seekers become more desirable for firms, and therefore more likely to find a job which fits their level of skills and experience. Indeed, several empirical studies provide evidence of the positive effects of an age-dependent minimum wage on youth employment (Yuen, 2003, Neumark and Wascher, 2004, Shannon, 2011, and Dickens, Riley, and Wilkinson, 2014. However, what they fail to address is that apart from the effect on employment stocks, this policy design fundamentally changes the youth labor market flows, introducing new dynamics into the decision making of both employers and employees.…”

Section: Introductionmentioning

confidence: 98%

“…In Section 3 we saw that the employment rates grow as youths age, but these growth rates are unlikely to be related to the changes of minimum wages (similar sustained growth paths are observed in other countries as well, irrespective of their use of age-dependent minimum wages, see Blundell, Bozio, and Laroque, 2013). The approach pursued by Dickens, Riley, and Wilkinson (2014) is to study the employment effects of age-dependent minimum wage changes using regression discontinuity (RD) design. In their study, the authors evaluate the employment effects of age-dependent minimum wage in the UK, focusing on the minimum wage rate discontinuity which occurs on workers' 22nd birthdays.…”

Section: Job Accessions and Employment Stocksmentioning

confidence: 99%

“…The job separations are shown to increase well ahead of the birthday discontinuity, which is a clear violation of no-anticipation, one of the key assumptions underlying the RD design. The positive employment effect of the minimum wage increase found by Dickens, Riley, and Wilkinson (2014) is therefore likely to be an artifact of the applied estimation strategy.…”

Section: Introductionmentioning

confidence: 99%

“…Yuen (2003) and Shannon (2011) study the effects of the abolition of the youth subminimum wage rate in several Canadian states, finding mixed evidence of the disemployment effects among their youth workforce. Very close to the focus of this paper is the study of Dickens, Riley, and Wilkinson (2014) who analyze the British variant of the age-dependent minimum wage system, focusing on the discontinuity which occurs on workers' 22nd birthdays. Using a regression discontinuity (RD) design they find that this increase of the minimum wage rate has a positive employment effect for low-skilled individuals.…”

Section: Introductionmentioning

confidence: 99%

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Happy Birthday, You're Fired! The Effects of an Age-Dependent Minimum Wage on Youth Employment Flows in the Netherlands

Kabátek

2015

SSRN Journal

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Section: Job Accessions and Employment Stocksmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 98%

Section: Job Accessions and Employment Stocksmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Happy Birthday, You're Fired! The Effects of an Age-Dependent Minimum Wage on Youth Employment Flows in the Netherlands

Kabátek

2015

SSRN Journal

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The impact of increasing the United Kingdom national minimum wage on self‐reported health

2022

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The National Minimum Wage (NMW) was introduced in the UK in April 1999 with the aim of increasing the incomes of the lowest paid in society and to address the worst cases of labor market exploitation (Low Pay Commission, 1998). Since then, the UK NMW has consistently increased in nominal terms. Given the association between disadvantage and poor health (Marmot et al., 2010), one may expect that raising minimum wages would have an impact on the health of individuals receiving wage increases.Lenhart (2017) states that higher minimum wages may improve mental health by reducing financial stress and income insecurity. Conversely, Reeves et al. ( 2017) suggest that wage increases may affect the uptake of risky behaviors such as smoking or alcohol consumption. There is an existing literature which highlights the complex relationship between income and wealth and the consumption of healthy or unhealthy goods (Adda et al., 2009;van Kippersluis & Galama, 2014). In particular, "more affluent individuals are less likely to smoke, drink heavily, be overweight, and use illegal drugs, and are more likely to exercise [than less affluent groups]" (Kippersluis & Galama, 2014, p197), but they tend to engage more in some moderately unhealthy behaviors (such as moderate drinking), and less in other unhealthy behaviors (such as smoking). Kippersluis and Galama state that it is unclear what explains the differences in health behaviors across wealth groups (2014). Kenkel et al. (2014) demonstrate that cigarettes are a normal good, and therefore, an increase in income may lead to increased cigarette consumption (an unhealthy behavior). However, the same may

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Conflicting economic policies and mental health: Evidence from the UK national living wage and benefits freeze

Akanni,

Lenhart,

Morton

2024

J Policy Anal Manage

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This study evaluates the mental health effects of two simultaneously implemented but conflicting policies in the UK: the National Living Wage and the benefits freeze policy. We employed the Callaway and Sant'Anna (2021) DID estimator to evaluate the heterogeneous policy effects, and we found that NLW leads to positive improvements in mental health. Also, we find the negative impact of the benefits freeze policy constricts the NLW effects. Our result is robust to the sensitivity analysis of the parallel trend assumption and the comparison group definition. Additional results support the psychosocial hypothesis that increased job satisfaction is strongly correlated with improvements in mental health. Also, we found evidence of substitution effects between work hours and leisure. Overall, our findings suggest that the effects of the NLW cannot be understood in isolation from the way the entire suite of policy instruments operates on earnings and liveable income for affected low wage workers.

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The Uk Minimum Wage at 22 Years of Age: A Regression Discontinuity Approach

Cited by 32 publications

References 24 publications

Happy Birthday, You're Fired! The Effects of an Age-Dependent Minimum Wage on Youth Employment Flows in the Netherlands

Happy Birthday, You're Fired! The Effects of an Age-Dependent Minimum Wage on Youth Employment Flows in the Netherlands

The impact of increasing the United Kingdom national minimum wage on self‐reported health

Conflicting economic policies and mental health: Evidence from the UK national living wage and benefits freeze

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