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Effects of Minimum Wages on the Gender Pay Gap

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  • Dex, Shirley
  • Sutherland, Holly
  • Joshi, Heather

Abstract

This article explores the implications of alternative policy regimes for gender wage inequality. Against the background of a description of recent changes in pay ratios of men and women in Britain, the focus is primarily on calculating the likely effects on gender wage ratios of introducing the statutory minimum wage in the UK. The effects of alternative options are also assessed in part; giving women men's average hourly earnings, leaving occupations unchanged, and redistributing women through occupations in the same proportions as men, leaving their occupational average pay unchanged. The largest effects on pay ratios come from giving women the same pay as men in their existing occupations. However, a statutory minimum wage of £3.60 per hour does improve the gender pay ratio and helps women at the lower end of the pay spectrum. It is also considerably easier to implement than other options.

Suggested Citation

  • Dex, Shirley & Sutherland, Holly & Joshi, Heather, 2000. "Effects of Minimum Wages on the Gender Pay Gap," National Institute Economic Review, National Institute of Economic and Social Research, vol. 173, pages 80-88, July.
    • Handle: RePEc:cup:nierev:v:173:y:2000:i::p:80-88_9
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    Cited by:

    1. Andrea Schäfer & Karin Gottschall, 2015. "From wage regulation to wage gap: how wage-setting institutions and structures shape the gender wage gap across three industries in 24 European countries and Germany," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 39(2), pages 467-496.
    2. Clemens Ohlert, 2024. "Minimum Wage Effects on Gender Gaps in Working Hours and Earnings in Germany," Working Papers 663, ECINEQ, Society for the Study of Economic Inequality.
    3. Collischon Matthias, 2019. "Is There a Glass Ceiling over Germany?," German Economic Review, De Gruyter, vol. 20(4), pages 329-359, December.
    4. Amadxarif, Zahid & Angeli, Marilena & Haldane, Andrew G & Zemaityte, Gabija, 2020. "Understanding pay gaps," Bank of England working papers 877, Bank of England.
    5. Mary Hallward-Driemeier & Bob Rijkers & Andrew Waxman, 2017. "Can Minimum Wages Close the Gender Wage Gap?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(2), pages 310-334, June.
    6. Heather Joshi & Alexander Bryson & David Wilkinson & Kelly Ward, 2021. "The gender gap in wages over the life course: Evidence from a British cohort born in 1958," Gender, Work and Organization, Wiley Blackwell, vol. 28(1), pages 397-415, January.
    7. Helen Robinson, 2002. "Wrong Side of the Track? The Impact of the Minimum Wage on Gender Pay Gaps in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(5), pages 417-448, December.
    8. Schmid, Ramona, 2022. "Mind the gap: Effects of the national minimum wage on the gender wage gap in Germany," Hohenheim Discussion Papers in Business, Economics and Social Sciences 06-2022, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    9. Majchrowska, Aleksandra & Strawiński, Paweł, 2018. "Impact of minimum wage increase on gender wage gap: Case of Poland," Economic Modelling, Elsevier, vol. 70(C), pages 174-185.
    10. Schmid, Ramona, 2023. "Mind the Gap: Effects of the National Minimum Wage on the Gender Wage Gap in Germany," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277646, Verein für Socialpolitik / German Economic Association.

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