Lanot, G and Sousounis, P (2016) The National Minimum Wage and the Substitutability Between Young and Old Workers in Low Paid Occupations. The Manchester School, 85 (5). pp. 601-633.

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Abstract

We study the effect of the National Minimum Wage (NMW) on the workforce age composition within the low paying sectors of the British economy. Our interest is in the degree of substitutability between labour inputs (young and old employees). We find evidence that both the introduction and the regular upratings of the NMW have a significant effect on the observed changes to the relative wages and to the relative wage bills but not to relative employment. We estimate the elasticity of substitution, between ‘young’ age groups and older workers (55+) to be zero, while that of ‘prime’ (22+) age and older workers, to be around 0.79. Our estimates therefore imply significant complementarity between younger and old employees.

Item Type: Article
Additional Information: This is the peer reviewed version of the following article: The National Minimum Wage and the Substitutability Between Young and Old Workers in Low Paid Occupations, which has been published in final form at 10.1111/manc.12168. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Humanities and Social Sciences > Keele Management School
Depositing User: Symplectic
Date Deposited: 01 Aug 2016 09:33
Last Modified: 10 Apr 2019 07:49
URI: http://eprints.keele.ac.uk/id/eprint/2081

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