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Cited by 253

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The Effects of Minimum Wages on Wage Dispersion and Employment: Evidence from the U.K. Wages Councils

Machin, Stephen, Manning, Alan·1994·ILR Review

Abstract

Using data on Wages Council coverage from the United Kingdom New Earnings Survey, the authors examine the impact of mandated minimum wages on wage dispersion and employment in the United Kingdom in the 1980s. They find evidence that a dramatic decline in the toughness of the regulation imposed by the Wages Councils through the 1980s—a decline, that is, in the level of the minimum wage relative to the average wage—significantly contributed to widening wage dispersion over those years. There is, however, no evidence of an increase in employment resulting from the weakening bite of the Wages Council minimum pay rates. Instead, consistent with the conclusions of several recent U.S. studies, the findings suggest that the minimum wage had either no effect or a positive effect on employment.

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Metadata

Authors
Machin, S., & Manning, A.
Venue
ILR Review
Published
1994-01
Volume
47
Issue
2
Pages
319-329
ISSN
  • 0019-7939 (ISSN-L)
  • 2162-271X
OpenAlex
W2118844622
Cited by
253
References
0
FWCI
37.49
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: The Effects of Minimum Wages on Wage Dispersion and Employment: Evidence from the U.K. Wages Councils. https://app.cochat.ai/papers/10.1177/001979399404700210
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Machin, S., & Manning, A. (1994). The Effects of Minimum Wages on Wage Dispersion and Employment: Evidence from the U.K. Wages Councils. ILR Review. https://doi.org/10.1177/001979399404700210

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