Research and analysis

National Minimum Wage: impact on low-paying companies. Bondibene, Riley

The impact of the National Minimum Wage (NMW) on a range of outcomes for low-paying companies in the UK.

• From: Low Pay Commission
• Published: 9 August 2013

Documents

The impact of the National Minimum Wage on firm behaviour during recession

PDF, 1.08 MB, 47 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email lpc@lowpay.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

This paper from the National Institute of Economic and Social Research shows how the introduction of the National Minimum Wage (NMW) in 1999 affected low-paying companies in the UK.

It finds that:

• on introduction, the NMW increased average labour costs for low-paying companies
• companies may have adjusted to the increases in labour costs as a result of the NMW by raising labour productivity and by reducing profitability
• the NMW has not changed average employment or investment rates for these companies
• the NMW has not had a detrimental impact on firm outcomes since the financial crisis and the recession of 2008

Published 9 August 2013