Impact of the Minimum Wage on the Incidence of Second Job Holding in Britain

22 Pages Posted: 3 Aug 2007

See all articles by Helen Robinson

Helen Robinson

Cardiff University - Cardiff Business School

Jonathan Wadsworth

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); IZA Institute of Labor Economics; William Davidson Institute; Royal Holloway College University of London

Abstract

The advent of any earnings boost, such as provided by the introduction of a minimum wage, might be expected to reduce the supply of low-paid individuals wanting to hold a second job. This paper uses difference-in-differences estimation on a panel of individuals matched across successive Labour Force Surveys around the time of the introduction of the national minimum wage in the United Kingdom in order to estimate the impact of the minimum wage and its subsequent upratings on second job working. There is little evidence to suggest that the extra pay provided by the introduction of the minimum wage was sufficient to affect the incidence of second job holding significantly. However, hours worked in the main job by second job holders may have risen relative to those not covered by the minimum wage; and hours worked in second jobs may have fallen for those whose second job was initially below the minimum.

Suggested Citation

Robinson, Helen and Wadsworth, Jonathan, Impact of the Minimum Wage on the Incidence of Second Job Holding in Britain. Scottish Journal of Political Economy, Vol. 54, No. 4, pp. 553-574, September 2007. Available at SSRN: https://ssrn.com/abstract=1004174 or http://dx.doi.org/10.1111/j.1467-9485.2007.00429.x

Helen Robinson (Contact Author)

Cardiff University - Cardiff Business School ( email )

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Jonathan Wadsworth

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

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IZA Institute of Labor Economics

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Royal Holloway College University of London

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