Georgiadis, A orcid.org/0000-0003-1774-771X (2013) Efficiency Wages and the Economic Effects of the Minimum Wage: Evidence from a Low-Wage Labour Market. Oxford Bulletin of Economics and Statistics, 75 (6). pp. 962-979. ISSN 0305-9049
Abstract
This article exploits a natural experiment provided by the 1999 introduction of the UK National Minimum Wage (NMW) to test for efficiency wage considerations in a low-wage sector, the UK residential care homes industry. The empirical results provide support to the wage-supervision trade-off prediction of the shirking model and suggest that the NMW may have operated as an efficiency wage in the care homes sector, leading to a reduction in supervision costs. These findings can explain earlier evidence suggesting that although the NMW introduction increased wages dramatically in the care homes sector, it generated only moderate negative employment effects.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2012 The Department of Economics, University of Oxford and John Wiley & Sons Ltd. This is the peer reviewed version of the following article: Georgiadis, A. (2013), Efficiency Wages and the Economic Effects of the Minimum Wage: Evidence from a Low-Wage Labour Market. Oxford Bulletin of Economics and Statistics, 75: 962-979, which has been published in final form at https://doi.org/10.1111/j.1468-0084.2012.00713.x. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited. |
Keywords: | J31, J38, J41 |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > International Business Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 09 Dec 2022 14:07 |
Last Modified: | 10 Dec 2022 01:35 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/j.1468-0084.2012.00713.x |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:187136 |