Minimum Wages and the Gender Gap in Pay. Evidence from the UK and Ireland
Luxembourg Institute of Socio-Economic Research (LISER) Working Paper Series 2016-02
42 Pages Posted: 22 Jan 2016
Date Written: August 27, 2015
Since women are disproportionately in low paid work, they should benefit the most from minimum wage policies. We exploit the introduction of a national minimum wage (MW) in Ireland (in 2000) and the UK (in 1999) to check this prediction. Using panel survey data, we implement difference-in-difference estimation of a distribution regression model. We separate out "price" effects from "composition" effects. A large reduction of the gap at low wages is found for Ireland, with small spill-over effects further up in the distribution. There is hardly any effect in Britain, largely because of apparent non-compliance with the minimum wage legislation.
Keywords: gender wage gap, minimum wages, distribution regression, UK, Ireland
JEL Classification: C14, I2, J16
Suggested Citation: Suggested Citation