The impact of the minimum wage on employment and hours

Capuano S, Cockett J, Gray H, Papoutsaki D |   | Institute for Employment Studies | Dec 2019

cover image

The aim of the research is to assess the impact of the introduction of the NLW in April 2016 and its successive uprating on employment and hours worked.

From October 2010 until the introduction of the NLW in April 2016, the adult rate of the NMW applied to all employees aged 21 or more, but since April 2016 those aged 25 or more have been eligible to receive the higher NLW.

Those aged between 21 and 24 now receive the adult NMW, whilst a lower youth development rate applies to those aged between 18 and 20. There are also different rates for those aged 16 or 17 and apprentices who meet certain criteria.

The main questions to be addressed by the research are:

■    What impact has the introduction of the NLW had on employment and hours for employees aged 25 years and over?

■    What impact has the introduction of the NLW had on employment and hours for younger employees (those under 25 years of age)?

■    Has the impact of recent upratings on employment and hours differed for employees of different ages and by whether they work full-time or part-time?

■  Has the impact varied by any other types of employee or employer characteristics?