{"title":"Exploiting the Irish Border to Estimate Minimum Wage Impacts in Northern Ireland","authors":"D. McVicar, A. Park, S. McGuinness","doi":"10.2478/izajole-2019-0002","DOIUrl":null,"url":null,"abstract":"Abstract This paper examines the impacts of the introduction of the UK National Minimum Wage (NMW) in 1999 and the introduction of the UK National Living Wage (NLW) in 2016 in Northern Ireland (NI) on employment and hours. NI is the only part of the UK with a land border where the NMW and NLW cover those working on one side of the border but not those working on the other side of the border (i.e., Republic of Ireland). This discontinuity in minimum wage coverage enables a research design that estimates the impacts of the NMW and NLW on employment and hours worked using difference-in-differences estimation. We find a small decrease in the employment rate of 22–59/64-year-olds in NI, of up to 2% points, in the year following the introduction of the NMW, but no impact on hours worked. We find no clear evidence that the introduction of the NLW impacted either employment or hours worked in NI.","PeriodicalId":37841,"journal":{"name":"IZA Journal of Labor Economics","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2019-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"IZA Journal of Labor Economics","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2478/izajole-2019-0002","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Business, Management and Accounting","Score":null,"Total":0}
引用次数: 2
Abstract
Abstract This paper examines the impacts of the introduction of the UK National Minimum Wage (NMW) in 1999 and the introduction of the UK National Living Wage (NLW) in 2016 in Northern Ireland (NI) on employment and hours. NI is the only part of the UK with a land border where the NMW and NLW cover those working on one side of the border but not those working on the other side of the border (i.e., Republic of Ireland). This discontinuity in minimum wage coverage enables a research design that estimates the impacts of the NMW and NLW on employment and hours worked using difference-in-differences estimation. We find a small decrease in the employment rate of 22–59/64-year-olds in NI, of up to 2% points, in the year following the introduction of the NMW, but no impact on hours worked. We find no clear evidence that the introduction of the NLW impacted either employment or hours worked in NI.
期刊介绍：
As of March 31, 2019, the IZA Open Access Journal Series will transfer to Sciendo. Please use the Springer Editorial Manager system for all submissions until February 28. During the transfer period in March 2019 you may direct your submissions to journals@iza.org. The IZA Journal of Labor Economics publishes scientific articles in all areas of labor economics. This refers to original high-quality theoretical and applied contributions on both microeconomic and macroeconomic labor-related topics. In particular, the IZA Journal of Labor Economics encourages submissions in subject areas that are closely linked to the various IZA Program Areas, ranging from education, family and environment to mobility, behavioral and personnel economics, and labor market institutions, among others. The IZA Journal of Labor Economics is part of IZA’s mission of contributing to social and economic discourse, enabling political decision-making to be based on the best available scientific knowledge. We want to stimulate research to close knowledge gaps. Hence, the IZA Journal of Labor Economics particularly welcomes contributions that provide scientifically sound answers to open and relevant questions of modern labor economics.
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