The impact of the National Minimum Wage (NMW) on a range of outcomes for low-paying companies in the UK.
This paper from the National Institute of Economic and Social Research shows how the introduction of the National Minimum Wage (NMW) in 1999 affected low-paying companies in the UK.
It finds that:
- on introduction, the NMW increased average labour costs for low-paying companies
- companies may have adjusted to the increases in labour costs as a result of the NMW by raising labour productivity and by reducing profitability
- the NMW has not changed average employment or investment rates for these companies
- the NMW has not had a detrimental impact on firm outcomes since the financial crisis and the recession of 2008