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Pay Determination in Small Firms in the UK: The Case of the Response to the National Minimum WageMark W. GilmanUniversity of Kent, Canterbury Paul K. EdwardsUniversity of Warwick - Warwick Business School Monder RamDe Montfort University - School of Business James ArrowsmithUniversity of Warwick - Department of Computer Science Industrial Relations Journal, Vol. 33, pp. 52-67, 2002 Abstract: Pay determination in small firms is widely expected to follow the dictates of the market. Research on 81 firms in three competitive sectors finds, instead, loosely defined and variable pay structures. This variability is explained in terms of the interplay between labour and product markets, firms' own choices, and 'shocks' such as the National Minimum Wage. This analysis thus contributes to developing institutional theories of labour markets and pay systems.
Number of Pages in PDF File: 16 Accepted Paper SeriesDate posted: November 17, 2002Suggested CitationContact Information
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