Training and the New Minimum Wage

Abstract

Using the British Household Panel Survey, we estimate the impact of the national minimum wage, introduced in April 1999, on the work-related training of low-wage workers. We use two 'treatment groups'- those workers who explicitly stated they were affected by the new minimum and those workers whose derived 1998 wages were below the minimum. Using difference-indifferences techniques for the period 1998 to 2000, we find no evidence that the introduction of the minimum wage reduced the training of affected workers and some evidence that it increased it. Show more