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

See all articles by Olivier Bargain

Olivier Bargain

IZA Institute of Labor Economics; University College Dublin (UCD)

Karina Doorley

ESRI

Philippe Van Kerm

Luxembourg Institute of Socio-Economic Research (LISER)

Date Written: August 27, 2015

Abstract

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

Bargain, Olivier and Doorley, Karina and Van Kerm, Philippe, Minimum Wages and the Gender Gap in Pay. Evidence from the UK and Ireland (August 27, 2015). Luxembourg Institute of Socio-Economic Research (LISER) Working Paper Series 2016-02, Available at SSRN: https://ssrn.com/abstract=2719605 or http://dx.doi.org/10.2139/ssrn.2719605

Olivier Bargain (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

University College Dublin (UCD) ( email )

Belfield, Dublin 4 4
Ireland
+353 1 716 8357 (Phone)
+353 1 283 0068 (Fax)

HOME PAGE: http://www.ucd.ie/economics/staff/obargain/obargain.htm

Karina Doorley

ESRI ( email )

Whitaker square Sir john Rogerson's Quay
Dublin 2
Dublin
Ireland

Philippe Van Kerm

Luxembourg Institute of Socio-Economic Research (LISER) ( email )

11, Porte des Sciences
Esch-sur-Alzette, L-4366
Luxembourg

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