%0 Report
        %A Jones, Melanie K.
%A Jones, Richard J.
%A Murphy, Philip D.
%A Sloane, Peter J.
        %T The Dynamics of the National Minimum Wage: Transitions Between Different Labour Market States
        %D 2005
        %8 2005 Jul
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 1690
        %U https://www.iza.org/index.php/publications/dp1690
        %X An important policy issue is whether the National Minimum Wage (NMW) introduced in Britain in April 1999, is a stepping stone to higher wages or traps workers in a low-wage – no-wage cycle. In this paper we utilise the longitudinal element of the Labour Force Survey over the period 1999 to 2003 to model transitions between different labour market states – payment at or below the NMW, above the NMW, unemployment and inactivity, using a multinomial logit approach. It appears that for many workers payment at or below the NMW is of relatively short duration and a substantial number move into higher paid jobs.


        %K steady state distributions
%K transitions
%K national minimum wage