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Minimum wages and the gender gap in pay. Evidence from the UK and Ireland

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  • BARGAIN Olivier
  • DOORLEY Karina
  • VAN KERM Philippe

Abstract

Since women are disproportionately in low paid work, they should benefit the most from minimum wage policies. We exploit the introduction of a national minimum wage (MW) in Ireland (in 2000) and the UK (in 1999) to check this prediction. Using panel survey data, we implement difference-in-difference estimation of a distribution regression model. We separate out "price" effects from "composition" effects. A large reduction of the gap at low wages is found for Ireland, with small spill-over effects further up in the distribution. There is hardly any effect in Britain, largely because of apparent non-compliance with the minimum wage legislation.

Suggested Citation

  • BARGAIN Olivier & DOORLEY Karina & VAN KERM Philippe, 2016. "Minimum wages and the gender gap in pay. Evidence from the UK and Ireland," LISER Working Paper Series 2016-02, Luxembourg Institute of Socio-Economic Research (LISER).
    • Handle: RePEc:irs:cepswp:2016-02
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    Cited by:

    1. Redmond, Paul & Doorley, Karina & McGuinness, Seamus, 2019. "The impact of a change in the National Minimum Wage on the distribution of hourly wages and household income in Ireland," Research Series, Economic and Social Research Institute (ESRI), number RS86.
    2. Michelle Barrett & Karina Doorley & Paul Redmond & Barra Roantree, 2022. "How Has the Gender Earnings Gap in Ireland Changed in Thirty Years?," Social Sciences, MDPI, vol. 11(8), pages 1-21, August.

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    More about this item

    Keywords

    gender wage gap; minimum wage; distribution regression; UK; Ireland;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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