Minimum Wages and the Gender Gap in Pay: New Evidence from the United Kingdom and Ireland

26 Pages Posted: 6 Jun 2020

See all articles by Olivier Bargain

Olivier Bargain

affiliation not provided to SSRN

Karina Doorley

ESRI

Philippe Van Kerm

Luxembourg Institute of Socio-Economic Research (LISER)

Date Written: September 2019

Abstract

Women are disproportionately in low‐paid work compared to men so, in the absence of rationing effects on their employment, they should benefit the most from minimum wage policies. This study examines the change in the gender wage gap around the introduction of minimum wages in Ireland and the United Kingdom (U.K.). Using survey data for the two countries, we develop a decomposition of the change in the gender differences in wage distributions around the date of introduction of minimum wages. We separate out “price” effects attributed to minimum wages from “employment composition” effects. A significant reduction of the gender gap at low wages is observed after the introduction of the minimum wage in Ireland, while there is hardly any change in the U.K. Counterfactual simulations show that the difference between countries may be attributed to gender differences in non‐compliance with the minimum wage legislation in the U.K.

Keywords: gender wage gap, minimum wage, distribution regression

Suggested Citation

Bargain, Olivier and Doorley, Karina and Van Kerm, Philippe, Minimum Wages and the Gender Gap in Pay: New Evidence from the United Kingdom and Ireland (September 2019). Review of Income and Wealth, Vol. 65, Issue 3, pp. 514-539, 2019, Available at SSRN: https://ssrn.com/abstract=3619343 or http://dx.doi.org/10.1111/roiw.12384

Olivier Bargain (Contact Author)

affiliation not provided to SSRN

No Address Available

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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