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Issues in the measurement of low pay

Author

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  • Catrin Ormerod

    (Office for National Statistics)

  • Felix Ritchie

    (Office for National Statistics)

Abstract

Describes three related investigations into differences between the official ASHE measure and supplementary LFS measure.The UK uses two major surveys to produce low pay estimates; the official ASHE measure and supplementary LFS measure. The differences between these measures have been accepted as a consequenceof the different survey methods and purposes.This article describes three related investigations into these differences. The first shows how the timing of measurement is important and suggests evidence of non-compliance. The second examines the perceived inaccuracy ofresponses in household surveys and how this affects LFS low pay estimates. The third shows that the measure of hourly rate used can explain much of the difference between the estimates.This work supports the current methods for generating low pay estimates and highlights the need for an awareness of these background issues when interpreting the estimates. Economic & Labour Market Review (2007) [1], 37–45; doi:10.1057/palgrave.elmr.1410090

Suggested Citation

  • Catrin Ormerod & Felix Ritchie, 2007. "Issues in the measurement of low pay," Economic & Labour Market Review, Palgrave Macmillan;Office for National Statistics, vol. 1(6), pages 37-45, June.
    • Handle: RePEc:pal:ecolmr:v:1:y:2007:i:6:p:37-45
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    Cited by:

    1. McVicar Duncan & Park Andrew & McGuinness Seamus, 2019. "Exploiting the Irish Border to Estimate Minimum Wage Impacts in Northern Ireland," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-20, June.
    2. Egidio Farina & Colin Green & Duncan McVicar, 2021. "Are Estimates of Non‐Standard Employment Wage Penalties Robust to Different Wage Measures? The Case of Zero‐hour Contracts in the UK," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 60(3), pages 370-399, July.
    3. Eid, Nourhan & Maltby, Josephine & Talavera, Oleksandr, 2016. "Income Rounding and Loan Performance in the Peer-to-Peer Market," MPRA Paper 72852, University Library of Munich, Germany.
    4. Egidio Farina & Colin Green & Duncan McVicar, 2020. "Zero Hours Contracts and Their Growth," British Journal of Industrial Relations, London School of Economics, vol. 58(3), pages 507-531, September.
    5. D Leslie & D Blackaby & P Murphy & N OLeary, 2009. "The Employment and Earnings of Britains Senior Citizens," Economic Issues Journal Articles, Economic Issues, vol. 14(2), pages 1-26, September.
    6. Lin, Tse-Chun & Pursiainen, Vesa, 2021. "The round number heuristic and entrepreneur crowdfunding performance," Journal of Corporate Finance, Elsevier, vol. 68(C).

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