Welfare Reform on the Web (July 2003): Minimum Wage - UK

IMPLICATIONS OF THE NATIONAL MINIMUM WAGE FOR TRAINING IN SMALL FIRMS

J. Heyes and A. Gray

Human Resource Management Journal, vol. 13, 2003, p.76-86

A survey of 258 small firms showed that the national minimum wage boosted the pay of workers in the majority of cases. Firms responded to the rise in labour costs in a variety of ways, including cutting hours of work and increasing prices. A majority of those that sought to offset costs did so by taking steps to improve the quality of goods and services offered. In most cases improvements in quality coincided with increases in the amount and/or quality of training offered to employees. There is evidence, therefore, that the national minimum wage has stimulated training in small enterprises through a sort of shock effect.

WHY EXCLUDE THE YOUNG

Anon.

Labour Research, vol. 92 May 2003, p.17-18

Argues against young workers aged 18-21 being excluded from the full national minimum wage and paid a lower youth development rate.