1
E alua ing he Impac o a Na ional Minimum Wage:
E idence om a New Su ey o Fi ms in I eland.1
Donal O’Neill** , B ian Nolan* and James Williams*
Sep embe 2002
Abs ac
In Ap il 2000 he I ish go e nmen in oduced a na ional minimum wage o £4.40 an hou . We use
da a om a specially designed su ey o i ms o es ima e he employmen e ec s o his change.
Employmen g ow h among i ms wi h low-wage wo ke s p io o he legisla ion was no di e en o
ha o i ms no a ec ed by he legisla ion. A mo e e ined measu e o he minimum wage, howe e ,
sugges s ha he legisla ion may ha e had a nega i e e ec on employmen o he small numbe o
i ms mos se e ely a ec ed by he legisla ion. Howe e he size o hese e ec s a e s ill ela i ely
modes .
1 We would like o hank Paul De e eux, Aedin Do is, John Kennan, Alan Manning, Oli e Swee man and semina
pa icipan s a NUI Maynoo h, he 2001 No h Ame ican Summe Mee ings o he Econome ic Socie y (Ma yland,
USA), he 2002 Annual Con e ence o he Royal Economic Socie y (Wa wick, UK), he 2002 Annual con e ence o he
I ish Economics Associa ion (Mullinga , I eland) and he 2002 Mee ings o he Applied Econome ic Associa ion
(B ussels, Belgium) o help ul commen s on an ea lie d a o his pape .
** Economics Dep ., NUI Maynoo h, Maynoo h, Co. Kilda e, I eland (co esponding au ho : donal.on[email p o ec ed]).
* The Economic and Social Resea ch Ins i u e, 4 Bu ling on Road, Dublin.
* The Economic and Social Resea ch Ins i u e, 4 Bu ling on Road, Dublin.
1
2
E alua ing he Impac o a Na ional Minimum Wage:
E idence om a New Su ey o Fi ms in I eland.
Sep embe 2002
Abs ac
In Ap il 2000 he I ish go e nmen in oduced a na ional minimum wage o £4.40 an hou . We use
da a om a specially designed su ey o i ms o es ima e he employmen e ec s o his change.
Employmen g ow h among i ms wi h low-wage wo ke s p io o he legisla ion was no di e en o
ha o i ms no a ec ed by he legisla ion. A mo e e ined measu e o he minimum wage, howe e ,
sugges s ha he legisla ion may ha e had a nega i e e ec on employmen o he small numbe o
i ms mos se e ely a ec ed by he legisla ion. Howe e he size o hese e ec s a e s ill ela i ely
modes .
2
3
1. In oduc ion.
In he las 10 yea s a numbe o s udies ha e e-examined he labou ma ke e ec s o minimum
wage legisla ion. Much o his enewed in e es has been gene a ed by ecen indings which seem o
indica e ha he employmen e ec s o minimum wages a e small and in some cases may e en be
posi i e (Ca d and K uege (1995), Dickens, Machin and Manning (1999)). This is in con as o he
p edic ions o compe i i e ex book models o he labou ma ke , whe e minimum wages educe
employmen due o highe wage cos s (Allen (1938), Hicks (1963)). This pape p o ides addi ional
empi ical e idence on he labou ma ke e ec s o minimum wage legisla ion by examining he
consequences o he na ional minimum wage (NMW) in oduced in I eland in Ap il 2000. P io o
Ap il 2000, minimum wages in I eland we e se by Join Labou Commi ees (JLC). Howe e he
wages speci ied in hese ag eemen s we e o en qui e low and co e ed less han ¼ o he wo k o ce.
Fu he mo e he le el o en o cemen was qui e weak. On Ap il 1s 2000, he I ish go e nmen
in oduced a na ional minimum wage o £4.40 pe hou o all adul wo ke s aged 18 yea s o olde .
The na ional minimum wage co esponded o app oxima ely 2/3 he median wage a he ime i was
p oposed and was es ima ed ha i would di ec ly a ec abou 15% o he wo k o ce.
In his pape we e alua e he impac o he legisla ion on wages and employmen using da a
collec ed om a new su ey o i ms ca ied ou be o e and a e he in oduc ion o he NMW. The
panel su ey con ains de ailed in o ma ion on he employmen s uc u es and wo k p ac ices o
i ms, as well as subjec i e ques ions ela ing o he company’s a i ude owa ds minimum wage
laws. In designing he su ey we ied o ca e ully add ess some o he c i icisms aimed a ea lie
`be o e-a e ’ s udies on he US minimum wage.
Ou analysis sugges s ha he minimum wage legisla ion had li le e ec on he p obabili y
o i ms closing down. Fu he mo e compa isons o employmen g ow h o su i ing i ms wi h and
wi hou minimum wage wo ke s sugges ha he in oduc ion o he minimum wage had li le e ec
on employmen o e his pe iod. Howe e , hese simple compa isons ail o ake in o accoun he
signi ican wage g ow h ha was occu ing in I eland du ing his pe iod. In some i ms, low wage
wo ke s would ha e expe ienced a wage inc ease e en in he absence o he legisla ion. When we
adjus ou analysis o ake his in o accoun we ind ha he minimum wage has had a nega i e e ec
on employmen g ow h on he small numbe o i ms mos se e ely a ec ed by he legisla ion.
Howe e he es ima ed elas ici y o labou demand implied by ou analysis is ela i ely small gi en
he unskilled na u e o he wo ke s in ol ed.
2. The I ish Labou Ma ke P io o he minimum wage.
3
4
In 1999 a Minimum Wage Commission was se up o o e see he in oduc ion o a na ional
minimum wage in I eland. The commission ecommended ha
“The ini ial a e o he na ional minimum wage should be se a a ound wo hi ds o
median ea nings …..[no ing ha ]… in oday’s e ms, wo hi ds o median ea nings
would ep esen £4.40 pe hou ” (p. 59-60).
A sepa a e a e o employees unde 18 yea s o age, se a 70% o he ull a e, was also
ecommended. While i was en isioned ha he minimum wage would co espond o wo hi ds o
median ea nings, by he ime o i s in oduc ion his had allen somewha . In 2000 he minimum
wage a e o £4.40 co esponded o app oxima ely 53% o he median male wage a e.
In a epo commissioned by he Depa men o En e p ise, T ade and Employmen (DETE)
p io o he in oduc ion o he minimum wage Nolan and McCo mick (1999) used household su ey
da a o desc ibe he cha ac e is ics o hose a ec ed by he p oposed legisla ion. The esul s we e much
as expec ed. Women accoun ed o app oxima ely 55% o hose below he minimum wage. Since
women make up a mino i y o all employees, his means ha hey also aced a signi ican ly highe
isk o being low paid. Pa - ime employees we e also o e - ep esen ed among hose below he
minimum. Those wo king less han 30 hou s pe week made up one- i h o all employees bu abou
one- hi d o hose below he hou ly minimum wage. Mo e han hal o hose aged unde 21 we e
below he minimum. The pe cen age below he minimum wage was s ill ela i ely high o he 21-24
age g oup (app oxima ely 25%), bu hen alls sha ply o 10% o o he age g oups. In e ms o an
occupa ional b eakdown abou hal o all hose below he minimum wage we e ei he comme ce,
insu ance and inance wo ke s, o se ice wo ke s – wo ca ego ies holding less han one-qua e o
all employees.
As well as he numbe s a ec ed, he immedia e impac o he minimum wage on he wage
bill was a c ucial conce n. In he epo i was es ima ed ha he minimum wage was likely o ha e
inc eased g oss ea nings by app oxima ely 1.6% No su p isingly, he e was signi ican sec o al
a ia ion in he es ima ed wage bill e ec s. The wage bill was expec ed o inc ease by 4% in e ailing
and p o essional se ices sec o s, and o e 8% in pe sonal se ices, while in p oduc ion indus ies
he inc ease was only abou 1% o he wage bill. In he nex sec ion o he pape we analyse he
impac o hese changes using i m le el da a collec ed a he ime he legisla ion was in oduced.
3. A New Su ey o Fi ms.
To examine he consequences o he minimum wage legisla ion on labou ma ke ou comes
we conduc ed a new su ey o I ish i ms. Du ing he las qua e o 1998 2,330 es ablishmen s we e
asked o comple e a ques ionnai e designed o collec de ails on cu en employmen size,
4
5
employmen s uc u es by hou ly pay a es, as well as age, gende and ull o pa - ime composi ion
o he wo k o ce in he en e p ise in he 12 mon hs p eceding he su ey. We also collec ed da a on
he ex en o acancies, hi ings, and depa u es om he i m, as well as in o ma ion assessing
a i udes and pe cep ions among businesses o he in oduc ion o minimum wage legisla ion. In he
i s ins ance, an owne o di ec o o he company was con ac ed in ela ion o he su ey and hey
could i hey wished pass he su ey on o o someone in he i m wi h esponsibili y o and
knowledge o he employmen s uc u e o he i m.2 The ini ial su ey was based on a andom
s a i ied sample o es ablishmen s in I eland. 1064 ques ionnai es we e success ully comple ed,
co esponding o a alid esponse a e o 46%. These da a desc ibe he wo k p ac ices and
employmen s uc u e o i ms 12-14 mon hs p io o he in oduc ion o he minimum wage.
In he las qua e o 2000 we conduc ed a ollow up su ey o hese es ablishmen s in o de
o examine i m le el esponses o he minimum wage.3 A emp s we e made o con ac each o he
i ms in he o iginal su ey. As well as hese i ms, a la ge numbe o addi ional i ms we e also
su eyed. In o al, 1045 i ms esponded o he second su ey, o which 587 con ained employmen
and wage da a om bo h su eys. In addi ion we iden i ied 50 i ms ha had gone ou o business by
he ime o he second sweep, b inging he o al numbe ma ched a he wo su eys up o 637. Since
he na ional minimum wage was in oduced in Ap il 2000, he da a om he second su ey e lec s
employmen s uc u es app oxima ely 6 mon hs a e he minimum wage legisla ion was enac ed.
The ma ched i ms a e used o assess he impac o he minimum wage on labou ma ke a iables.
The e a e a numbe o po en ial p oblems associa ed wi h using panel su eys o his na u e
o analyse employmen esponses o minimum wage legisla ion. We ha e ied o add ess hese
issues in ou su ey design. I has been no ed by a numbe o esea che s (see o example B own
(1999) page 2132) ha be o e-and-a e compa isons may be a ec ed by he iming o hese
compa isons. I is qui e common o po en ial minimum wage legisla ion o be in he public domain
o some ime p io o being passed. I his is he case hen some i ms, an icipa ing i s in oduc ion,
may begin o make g adual changes o hei employmen s uc u e e en be o e he legisla ion is
enac ed. S udies ha use employmen le els be o e he minimum wage law is passed as he
benchma k le el o employmen may he e o e ha e al eady missed some o he employmen
esponse. To allow o his we included a se ies o ques ions a he end o he i s su ey examining
he employe s’ awa eness o he minimum wage and whe he hey had al eady aken s eps o p epa e
2 In he second su ey o example 52% o he ques ionnai es we e comple ed by an owne o di ec o o he company,
37% by a human esou ce manage o equi alen and only 11% we e comple ed by lowe -g ade s a . We should also
poin ou ha he su eys looked a employmen p ac ices in I eland in gene al. Fi ms we e no asked di ec ly abou he
minimum wage un il he inal page o he i s su ey. Combining his wi h he ac ha he su ey was pe sonally
adminis e ed leads us o belie e ha s a egic esponses a e unlikely o be impo an in ou su eys.
5

6
o a si ua ion whe e a minimum wage ope a es. Al hough 80% o i ms epo ed ha ing hea d o he
p oposed minimum wage, less han hal o hose who had hea d o i knew a wha a e is was o be
in oduced.4 Fu he mo e only 29% o hese i ms knew wha yea he legisla ion was due o be
enac ed (20% answe ed he w ong yea and he emaining 51% said hey did no know). Finally
when asked i hei company had aken any s eps o p epa e o he minimum wage only 13% o all
i ms said ha hey had.5 These p opo ions a e no e y di e en e en when we es ic ou sample
o i ms ha had minimum wage wo ke s a he ime o he i s su ey. We a e con iden , he e o e,
ha he i s wa e da a p o ide an app op ia e p e-legisla ion benchma k o he i ms in ou su ey.
I has also been sugges ed ha measu emen e o may dis o he esul s om su eys o his
kind.6 The e a e a numbe o easons as o why we hink his is less likely o be an issue o ou da a.
Fi s ly, all ou ques ionnai es we e comple ed on a pe sonally adminis e ed basis ha in ol ed an
in e iewe paying a isi o each esponden and comple ing he ins umen on si e. Secondly, while
he employmen da a in ou su ey come om a ques ion asking “… he o al numbe o pe sons
cu en ly engaged in you company, on a ull- ime and pa - ime basis”, he esponden was la e
asked o classi y he s a on he basis o pay, age, gende and occupa ion. A each s age he
in e iewe was ins uc ed o check ha he o als om hese classi ica ions ma ched he esponse o
he ini ial employmen ques ion. Whe e inconsis encies became appa en a a la e s age hese we e
esol ed by phone ollow-up wi h he esponden . These consis ency checks inc ease he eliabili y
o ou employmen da a and educe he likelihood o measu emen e o . Finally, we a emp ed o
ensu e ha he same indi idual illed in he ques ionnai e in bo h wa es o he su ey. We we e
success ul in doing so o app oxima ely 63% o he i ms, which aids compa abili y ac oss wa es.
In he second su ey 52% o he ques ionnai es we e comple ed by an owne o di ec o o he
company, 37% by a human esou ce manage o equi alen and only 11% we e comple ed by lowe -
le el s a
To examine he issue o measu emen u he we ollow Neuma k and Wasche (2000). They
a gue ha classical measu emen e o ha is unco ela ed o e ime should mani es i sel h ough a
ela i ely low co ela ion in employmen le els wi hin i ms ac oss he wo wa es o he da a. They
epo a co ela ion o .52 using su ey da a compa ed o a co ela ion o .81 using pay oll da a.
Figu e 1, shows a plo o wa e 2 s. wa e 1 employmen o he ma ched i ms in ou sample. The
3 A copy o he ques ionnai es used a e a ailable upon eques .
4 In pa icula only 48% o hose i ms who had hea d o he minimum wage indica ed a a e in he ange o £4.30-£4.50.
Only 10.43% co ec ly iden i ied £4.40 as he na ional minimum wage a e.
5 Fu he mo e many o he i ms who esponded posi i ely o his ques ion simply indica ed ha hey al eady paid o e
he minimum.
6 Fo example, Neuma k and Wasche (2000) sugges ha he employmen da a om Ca d and K uege ’s su ey o as -
ood es ablishmen s may con ain signi ican measu emen e o . See Ca d and K uege (2000) o a eply.
6
7
es ima ed co ela ion is .92, which is highe han ei he o he samples conside ed by Neuma k and
Wasche . Howe e i is impo an o ecognise ha i he measu emen e o in employmen is no o
he classical o m hen he es sugges ed by Neuma k and Wasche is no longe alid.
4. Employmen E ec s o he Na ional Minimum Wage.
The i s wa e o ou su ey shows ha a he end o 1998 app oxima ely 50% o he i ms
sampled had a wo ke ea ning less han £4.50. These wo ke s cons i u ed 21% o all p i a e-sec o
employees in he i m su ey. A mo e de ailed b eakdown o he incidence o low pay e eals ha
app oxima ely 13% o p i a e sec o employees we e being paid be ween £4.00 and £4.50 an hou
and app oxima ely 8.5% ecei ed an hou ly wage less han £3.99. By he end o 2000 on he o he
hand only 24% o i ms had a leas one wo ke ecei ing £4.50 o less and hese wo ke s cons i u ed
only 4% o he employees in he i m su ey. Only app oxima ely 1% o all employees ea ned less
han £3.99 by he end o 2000.
In he second wa e we asked i ms o indica e he app oxima e pe cen age inc ease in hei
wage bill esul ing di ec ly om he legisla ion. 76% o he i ms who esponded s a ed ha he
legisla ion had no e ec on hei wage bill. The a e age inc ease in labou cos s among he
emaining 24% was app oxima ely 8.6%. This is a ela i ely la ge inc ease in wages and sugges s
ha o hose i ms ha we e a ec ed, he minimum wage may ha e had a signi ican bi e. In he
second su ey we also asked i ms i hey had “ o inc ease he hou ly a es o highe g ade s a o
main ain pay di e en ials?”. 18% o i ms acknowledged some spillo e e ec s. The ex en o
spillo e among hese i ms is qui e la ge. Wi hin i ms who epo ed inc easing he wages o highe
g ade s a , on a e age 50% o he high wage wo ke s we e said o ha e had hei wages inc eased in
o de o main ain pay di e en ials.7
We begin examining he employmen e ec s o hese wage changes by looking a he i ms
who had gone ou o business by he ime o he second su ey. Table 1 classi ies i ms acco ding o
hei business s a us in 2001 and also acco ding o hei sales and p o i ac i i y be ween 1998 and
1999. No su p isingly we see ha i ms ha wen ou o business a e o e ep esen ed among i ms
who we e expe iencing bo h sales and p o i di icul ies in he yea s be o e closing down. Howe e
wha is o mo e in e es o us is he ex en o which he closu e decision o hese i ms was a ec ed
by he minimum wage legisla ion. Table 2 classi ies hese i ms acco ding o he wage s uc u e o
hei employmen o ce in 1998. These igu es show ha i ms who wen ou o business by he ime
o he second su ey end o be o e ep esen ed among high wage i ms and unde ep esen ed
7 We e u n o he issue o wage spillo e s la e in he pape .
7
8
among i ms employing a la ge numbe o minimum wage wo ke s. This is no wha you would
expec i i was he minimum wage legisla ion ha was he d i ing o ce behind hese i ms decision
o shu down. We ha e also es ima ed a p obi model o he likelihood o going ou o business,
which as well as including con ols o wage s uc u e and p o i s a us also con ols o a ange o
o he i m cha ac e is ics. As expec ed i ms who we e pe o ming poo ly we e signi ican ly mo e
likely o close down. Howe e he es ima ed coe icien on he minimum wage indica o was
s a is ically insigni ican (p- alue .39).
Al hough he minimum wage may no ha e esul ed in many i ms going ou o business i
may s ill ha e caused employmen educ ions among hose i ms who emained in business. To
examine he employmen e ec s o he wage changes o hese i ms we ela e employmen g ow h
o e his pe iod o measu es cap u ing he e ec i e bi e o he minimum wage. Al hough I eland was
expe iencing apid g ow h du ing his pe iod he e was a lo o a ia ion ac oss i ms. On a e age
employmen in hese i ms inc eased by app oxima ely 18% o e his pe iod.8 Howe e he median
inc ease in employmen was only 3%. 30% o he i ms expe ienced a decline in employmen and
app oxima ely 18% o i ms had no change in hei numbe o employees.
To examine he link be ween he minimum wage legisla ion and he employmen changes we
es ima ed he ollowing equa ion:
ln(Ni ) = 0 + 1 MinWI, -1+ 2Xi -1 + ei (1)
whe e N measu es employmen , MinW measu es he e ec i e bi e o he minimum wage and X
con ols o obse able cha ac e is ics o he i ms. To es ima e his equa ion we needed o cons uc
a measu e o MinW. Gi en he design o ou su ey a numbe o possibili ies we e a ailable: he
i s was a simple indica o deno ing whe he o no he i m employed wo ke s below he NMW
p io o i s in oduc ion (we label his LowWage99); he second measu es he p opo ion o he
i m’s labou o ce ha was below he NMW p io o i s in oduc ion (we deno e his by
P opLow99). The esul s o es ima ing equa ion (1) using only hese measu es as con ols a e gi en
in he i s wo columns o able 3. Nei he measu es o he minimum wage bi e a e signi ican ly
ela ed o employmen g ow h. This is consis en wi h he Ca d and K uege (1995) and Dickens,
Machin and Manning (1999) indings.
One p oblem wi h his app oach howe e , is ha iden i ica ion is achie ed by compa ing
i ms wi h minimum wage wo ke s o i ms wi hou hese wo ke s. Howe e i is likely ha hese
8
9
i ms may ha e expe ienced di e en employmen pa e ns e en wi hou he legisla ion. Failu e o
con ol o hese di e ences could dis o any minimum wage impac . Ou su eys allow us o
iden i y some cha ac e is ics o he i ms ha may be use ul con ol a iables. Among he con ol
a iables a ailable a e whe he he i ms was I ish o o eign owned (I ish), whe he he i m
expo ed o no (Expo ), an indica o o he p o i abili y o he i m in he yea p io o he minimum
wage (P o i ), an indica o a iable deno ing whe he o no a leas 50% o he i m’s non-
manage ial employees we e in a T ade Union (Union), as well as he pe cen age o he company’s
o al ope a ing cos s ha a e accoun ed o by hei o al wage bill (Wage Bill). We also included he
i ms ini ial employmen le el (To Emp99) as a eg esso . Summa y s a is ics o hese a iables a e
gi en in he Appendix.9 The esul s om his speci ica ion a e gi en in columns (3) and (4) o able
3. Looking a he esul s we see ha mo e p o i able i ms expe ienced as e employmen g ow h.
None o he o he con ol a iables a e s a is ically signi ican .10 F om ou pe spec i e he impo an
coe icien s a e hose on he minimum wage a iables. Including he addi ional con ols had li le
e ec on he minimum wage es ima es. I espec i e o he measu e used he minimum wage e ec is
s ill small and insigni ican .
An al e na i e way o achie ing iden i ica ion is o ocus only on i ms wi h a minimum
wage wo ke and o use a ia ions in he p opo ion o he labou o ce below he minimum wage o
iden i y he e ec . While his educes he numbe o obse a ions a ailable, i should also educe he
unobse ed he e ogenei y in he sample. The esul s om his exe cise a e gi en in Table 4.
Res ic ing he sample jus o minimum wage i ms makes li le di e ence o ou esul s. Again i
appea s as hough he minimum wage had li le e ec on employmen g ow h o his sample o
i ms.
While he esul s so a sugges ha he minimum wage had li le e ec on employmen
le els we need o be ca e ul in in e p e ing hese indings. We no ed ea lie ha app oxima ely 20%
o I ish employees we e ecei ing less han he minimum wage in he yea p io o he in oduc ion
o he NMW. In he analysis so a his g oup has o med he basis o ou ea men g oup. Howe e ,
a c i icism ha has o en been le elled a hese ypes o s udies is hei inabili y o dis inguish
8 To al non-ag icul u al employmen in I eland o e his same pe iod inc eased om 1.4m o 1.58m, an inc ease o
app oxima ely 13% (QNHS Repo Feb ua y 2001).
9 The summa y s a is ics a e p o ided o bo h he ull i s wa e sample and he es ic ed ma ched sample. The esul s
show ha on a e age he e is e y li le di e ence in he cha ac e is ics o he i ms in hese wo samples. We ha e also
es ima ed a p obi o pa icipa ion in he second su ey. The p- alue on he minimum wage a iable was .45, which
sugges s ha non- andom a i ion be ween he i s and second su eys in unlikley o a ec he minimum wage analysis.
10 The e a e some a iables in ou da a ha do a be e job o explaining employmen luc ua ions, such as he end in
sales o e his same pe iod. This a iable is highly signi ican when included in he employmen eg ession. Howe e ,
since ou goal is o isola e he impac o he minimum wage on employmen changes and pa o his e ec may wo k
h ough a educ ion in ou pu (scale-e ec ) we do no include his a iable in he eg ession.
9
16
)1(
)(
)1(
)1()1(N
N
1
11-
,
,MW ,
noMW
noMWMW
noMW
noMW MW
noMW
noMW
g
gg
gN
gNg
N
N









The denomina o e e s o he di e ence in g ow h a es as a esul o he legisla ion, which
we es ima e om ou median eg ession as -.19. To es ima e he denomina o we use ou median
eg ession o p edic he g ow h a e o i ms wi h a e age cha ac e is ics no a ec ed by he
legisla ion. This gi es an es ima e o gnoMW equal o .05. This in u n implies ha he pe cen age
change in employmen o hese i ms as a esul o he minimum wage was app oxima ely –.18. To
es ima e he pe cen age inc ease in wages as a esul o he minimum wage o hese i ms we ake
he a e age esponse o hese i ms o he ques ion in he second wa e which asked “By
app oxima ely wha pe cen age did he minimum wage di ec ly inc ease you labou cos s ?” . The
a e age esponse o he a ec ed i ms was 9%. Combining hese we ge an elas ici y o labou
demand o app oxima ely :
0.2
09.
18. 


LL

This es ima e is ce ainly wi hin he ange o p e ious es ima es o labou demand elas ici ies
(Hame mesh 1993 Ch. 3). I is somewha highe han he a e age es ima e which ends o lie in he
ange o [-.6,-.9]. Howe e we mus emembe ha ou elas ici y e e s o he demand o unskilled
labou which ends o be highe han he elas ici y o mo e skilled labou (Hame mesh 1993).
Howe e , he e a e a numbe o easons as o why his es ima e may end o o e es ima e he
elas ici y o labou demand. As no ed ea lie i ms classi ied as “E ec i e Minimum Wage Fi ms,”
we e expe iencing employmen declines p io o he legisla ion. As a esul he 18% decline in
employmen a e he legisla ion is likely o o e es ima e he all due o he minimum wage. To
accoun o his we asked i ms in he second su ey.
Q.36 Suppose he minimum wage had no been in oduced. Do you hink you would be
employing: mo e people oday han you a e; he same numbe o people o ewe
people.
Mo e people..........1 Same numbe ...........2 Fewe people .........3
Q.37 Abou how many mo e/less _______________ people
16

17
App oxima ely 30% o e ec ed i ms answe ed his ques ion posi i ely and he a e age
inc ease in employmen ac oss all hese i ms is app oxima ely 6% o hei cu en wo k o ce. This
p o ides an al e na i e measu e o he educ ion in employmen o hese i ms di ec ly as a esul o
he minimum wage and is somewha smalle han he eg ession es ima e. This is used in column 2
o able 8 as a measu e o N and gi es an elas ici y o -.66.
Finally he hi d column o able 8, adjus s he change in wages as a esul o he minimum
wage o allow o spillo e e ec s. Fi ms we e asked i hey had o adjus wages o highe g ade
s a in esponse o he minimum wage. Those who answe ed yes we e hen asked wha pe cen age
o highe -g ade s a ecei ed his inc ease. When we adjus o spillo e s13 we ind an es ima ed
wage e ec (w) o 12%, which is app oxima ely h ee pe cen age poin s highe han he wage
change wi hou spillo e s. Combining his wi h he sel - epo ed employmen loss gi es an elas ici y
o app oxima ely -.5.
Using he e ec i e minimum wage a iable o iden i y i ms a ec ed by he legisla ion and
hen using sel - epo ed measu es o employmen and wage changes gi es and elas ici y o demand
in he egion o [-.5,.-7]. This e ec alls wi hin he ange o elas ici ies epo ed by Hame mesh
(1993). Indeed in a ecen su ey ca ied ou by Fuchs e al (1998) a numbe o labou economis s
we e asked o p o ide hei bes guess o he o al wage elas ici y o labou demand. The
a e age(median) guess equalled -.63(-.50), which is e y close o he numbe we epo . On he o he
hand, he e a e easons as o why we migh ha e expec ed ou es ima e o be highe han hese
adi ional es ima es. Fi s ly we allow i ms o sel -selec hemsel es in o he ea men g oup. Fo
easons discussed abo e we migh expec his o push he es ima ed elas ici y upwa ds as only he
mos a ec ed employe s acknowledge he wage inc ease. Secondly ou expe imen is d i en by
educ ions in he p ice o unskilled labou which adi ionally ends o ha e ela i ely high
elas ici ies. Taking hese in o accoun one migh easonably conclude ha ou es ima es all owa ds
he lowe end o he ange iden i ied in p e ious s udies.
13 The pe cen age change in wage bill can be w i en as mwnonmwmwmwT WPWPW .
%)1(%% 




whe e Pmw
ep esen s he p opo ion o wage bill accoun ed o by minimum wage wo ke s. To adjus he wage bill o spillo e s we
assume ha i ms epo ing he di ec e ec o he legisla ion on he wage bill p o ide an es ima e o mw
W%
mw
P

and
ha Pmw can be p oxied by he p opo ion o minimum wage wo ke s in he i m. Fo i ms ha epo a spillo e e ec
on % o highe -g ade s a we calcula e he adjus ed wage bill e ec as mwmwmwmwTso PWPW 1(%% W%)





.
The a e age adjus ed wage change ac oss he e ec ed i ms is app oxima ely 12%. In calcula ing his a e age we omi
wo i ms ha seem o be ou lie s in e ms o hei wage da a. The i ms epo inc eases in he wage bill in excess o
100%. Including hem would inc ease he adjus ed wage e ec o 25% and educe he elas ici y u he o -.25. Since he
p opo ion o minimum wage wo ke s in he i m will o e es ima e hei con ibu ion o he wage bill he es ima ed
elas ici ies should be iewed as an uppe bound o he ue elas ici y.
17
18
5. Conclusion.
In his pape we ha e looked a he employmen e ec s o he na ional minimum wage
in oduced in I eland in Ap il 2000. To do his we use a panel su ey o i ms ha we e con ac ed
bo h be o e and a e he minimum wage was in oduced o ob ain in o ma ion on hei wo k
p ac ices and employmen s uc u e. Ini ial esul s show ha employmen g ow h among i ms wi h
low wage wo ke s p io o he legisla ion was no signi ican ly di e en o ha o i ms no a ec ed
by he legisla ion. This is consis en wi h ecen s udies ha ha e a gued ha minimum wages seem
o ha e no ad e se e ec s on employmen . Howe e , i has been ecognised o some ime now ha
coun s o wo ke s below he minimum wage (e en when adjus ed o dis ance om he minimum
wage) may be an unsa is ac o y measu e o he bi e o he minimum wage. Some wo ke s, ini ially
below he minimum wage a e likely o ha e hei wages inc eased o e ime i espec i e o he
legisla ion. I seems inco ec o include hese wo ke s in he ea men g oup when looking a he
e ec s o he legisla ion. This is likely o be a pa icula p oblem in I eland whe e wages ha e been
g owing signi ican ly in he yea s p io o he legisla ion and sugges s ha a pa ial explana ion o
he absence o a minimum wage e ec in hese da a is ha so ew i ms we e a ec ed by he
legisla ion. To allow o his we ede ined he minimum wage a iable o include only i ms who
had low wage wo ke s and who s a e ha hey would no ha e inc eased wages by as much we e i
no o he minimum wage legisla ion. When we used his ede ined measu e o he minimum wage
bi e we ind he nega i e employmen and hou s e ec s p edic ed by he compe i i e model o he
labou ma ke . Fu he analysis sugges s ha his esul is no d i en by unobse ed i m-le el
cha ac e is ics associa ed wi h employmen g ow h and sel - epo ed wage es ain . Al hough he e
is e idence o employmen losses among he small numbe o i ms mos se e ely a ec ed by he
legisla ion he es ima ed elas ici ies o labou demand calcula ed o hese i ms end o be ela i ely
modes in size, especially when wage spillo e s a e aken in o accoun .
18
19
Re e ences
Aa onson, D. (2001), “P ice Pass-Th ough and he Minimum Wage,” Re iew o Economics and
S a is ics, LXXXIII, no. 1, pp. 158-169.
Allen, R.G. D (1938), Ma hema ical Analysis o Economis s, London, Macmillan
Be k, R. A (1990), “ A p ime on obus eg ession,” in J.Fox and J.S.Long (eds) Mode n Me hods
o Da a Analysis, Newbu y P k, CA: Sage Publica ions.
B own, C (1999), “Minimum Wages, Employmen and he Dis ibu ion o Income,” in The
Handbook o Labo Economics, olume 3, Else ie Science.
Ca d, D and A.K euge (1995), My h and Measu emen : The New Economics o he Minimum
Wage, P ince on Uni e si y P ess.
Ca d, D and A.K euge (2000), “Minimum Wages and Employmen : A Case S udy o he Fas -Food
Indus y in New Je sey and Pennsyl ania: Reply,” Ame ican Economic Re iew, 90(5), Decembe ,
pp. 1397-1420.
Dee e, D, K. Mu phy, F.Welch (1996), “Examining he E idence on Minimum Wages and
Employmen ,” in The E ec s o he Minimum Wage on Employmen , edi ed M.Kos e s, AEI P ess,
Washing on DC, pp. 26-54.
Dickens, R, S. Machin and A.Manning (1999), “The E ec s o Minimum Wages on Employmen :
Theo y and E idence om B i ain, Jou nal o Labo Economics, 17, pp. 1-22.
Dolado, J, F. K ama z, S.Machin, A.Manning, D.Ma golis and C.Tuelings (1995) “The Economic
Impac o Minimum Wages in Eu ope,” Economic Policy, 23, pp. 317-72
Fuchs, V., A. K uege and J. Po e ba (1998) “Economis ’s Views abou Pa ame e s, Values and
Policies: Some Su ey Resul s in Labo and Public Economics,” Jou nal o Economic Li e a u e,
Vol. XXXVI, No. 3, pp. 1387-1425.
Hame mesh, D. (1993) Labo Demand, P ince on Uni e si y P ess.
Hicks, J (1963), The Theo y o Wages, Macmillian, New Yo k.
Holze , H, L. F. Ka z and A K uege (1998) Job Queues and Wages: New E idence on he
Minimum Wage and In e -Indus y Wage S uc u e NBER Wo king pape #2561.
Kennan, J (1995), “The Elusi e E ec s o Minimum Wages,” Jou nal o Economic Li e a u e,
33(4), Decembe , pp. 1950-65.
Li, G (1985), “Robus Reg ession,” in D. Hoaglin, F. Mos elle and J. Tukey (eds) Explo ing Da a
Tables, T ends and Shapes, John Wiley and Sons, New Yo k.
Machin, S. and A. Manning (1994) “The E ec s o Minimum Wages on Wage Dispe sion and
Employmen : E idence F om he Wages Councils”, Indus ial and Labo Rela ions Re iew, 47, 319-
29.
19
20
Machin, S. and A. Manning (1996) “Employmen and he In oduc ion o a Minimum Wage in
B i ain”, Economic Jou nal, 106, 667-676
Neuma k, D and W.Wasche (2000), “Minimum Wages and Employmen : A Case S udy o he Fas -
Food Indus y in New Je sey and Pennsyl ania: Commen ,” Ame ican Economic Re iew, 90(5),
Decembe , pp. 1362-1396.
Nolan, B and B.McCo mick (1999), “The Numbe s A ec ed by he Minimum Wage,” in The
Impac o Minimum Wage in I eland, Published by Depa men o En e p ise, T ade and
Employmen , (ISBN 0-7076-6787-9),
Welch, F (1976), “Minimum Wage Legisla ion in he Uni ed S a es,” in E alua ing he Labo
Ma ke E ec s o Social P og ams, edi ed by O.Ashen el e and J.Blum, P icen on NJ, P ince on
Uni . P ess, pp. 1-38
20
21
Figu e 1. Employmen Co ela ion wi hin Fi ms ac oss he wo wa es o he Su ey.
21

22
Figu e 2: : Rela ionship be ween Employmen changes and p opo ion o low wage wo ke s
o a ec ed i ms.
Pe cen age change in employmen
P opo ion o Low Wage Wo ke s
0.2 .4 .6 .8 1
0
.1
.2
.3
-.1
-.2
-.3
-.4
-.5
22
23
Table 1 : Fi ms ha pa icipa ed in he i s ound (1999) o he su ey c oss-classi ied acco ding o he
olume o hei business/le el o p o i s in he 12 mon hs p eceding he 1999 su ey and business s a us in
2001
T ends in 1998-99 in:
In Business in 2001
Ou o Business in 2001
All Fi ms
(pe cen ) (pe cen ) (pe cen )
(a) Business Volumes
Inc eased
56.1
40.2
54.8
S ayed he same
36.9
32.1
36.5
Dec eased
7.0
27.7
8.7
To al 100.0 100.0 100.0
(b) P o i Le els
Subs an ial Loss
0.8
12.7
1.8
Mode a e Loss
5.1
15.8
6.0
B oke E en
21.4
29.8
22.1
Mode a e P o i
67.6
41.7
65.5
Subs an ial P o i
5.1
0.0
4.7
To al 100.0 100.0 100.0
Table 2 : Fi ms ha pa icipa ed in he i s ound (1999) o he su ey c oss-classi ied acco ding o
pe cen age o employees in 1999 who we e below an hou ly basic pay o IR£4.50 and business s a us in 2001
Pe cen age Below
IR£4.50 an hou in 1999
In Business in 2001
Ou o Business in 2001
All Fi ms
(pe cen ) (pe cen ) (pe cen )
None
52.6
61.2
53.3
Less han 15%
4.2
1.0
4.0
15% o mo e
43.2
37.7
42.7
To al
100.0
100.0
100.0
23
24
Table 3. The impac o Minimum wages on Employmen
(Dependen Va iable – pe cen age change in employmen o m 1998-2000
-s a s in pa en heses a e based on Whi e’s obus s anda d e o s)
Explana o y Va iable
(1)
(2)
(3)
(4)
Cons an
.15*
(3.68)
.14*
(4.40)
.28*
(1.79)
.27*
(1.71)
LowWage99
-.012
(-.23)
-.012
(-.22)
P opLow99 .0002
(.18) .0002
(.17)
I ish -.12
(-1.16) -.12
(-1.18)
Expo .006
(.10) .007
(.11)
P o i .10*
(1.65) .10*
(1.63)
Union -.02
(-.35) -.02
(-.31)
WageBill -.002
(-1.25)
-.002
(-1.18)
To emp99 -000
(-1.00) -.0001
(-.98)
Sample Size 451 451 451 451
24
25
Table 4: The impac o Minimum wages on Employmen – Minimum wage Fi ms only
(Dependen Va iable – pe cen age change in employmen o m 1998-2000
-s a s in pa en heses a e based on Whi e’s obus s anda d e o s)
Explana o y
Va iable
(1)
(2)
Cons an
.12*
(2.69)
.26
(1.11)
P opLow99 .0006
(.54) .0008
(.51)
I ish -.20*
(-1.7)
Expo -.01
(-.18)
P o i .14*
(2.07)
Union .09
(.91)
WageBill -.001
(-.40)
To emp99 -.0006*
(1.80)
.
Sample Size 230 230
25
32
Q.12 Lis ed on his ca d [In . Show Ca d A] a e 7 possible di icul ies which could ace a
company in business oday. I would like you o ank hem om 1 o 7 in o de o
impo ance as hey ace you company. Assign a ‘1’ o he di icul y you hink is mos
impo an o you company, a ‘2’ o he second mos impo an di icul y and so on.
Rank in e ms
o impo ance
Poo Indus ial Rela ions..........................................................................................
Di icul ies in ec ui ing s a ...................................................................................
Employe ’s PRSI .....................................................................................................
Basic Labou Cos s/Wages (o he han PRSI elemen ) ...........................................
Un ai Compe i ion om o he companies..............................................................
Co po a e axes/Taxes on p o i s .............................................................................
A o dable equi y and wo king capi al ....................................................................
In . Reco d ank gi en o “Di icul ies in ec ui ing s a ”: _________ ( ank).
I his is anked 1 o 2 ask Q.13. -o he wise go o Q.14.
Q.13 Why do you hink you expe ience hese di icul ies in ec ui ing s a ? [In . Show Ca d B
and ick all ha apply.]
(i) wo ke s do no ind i wo hwhile aking a job a he wages o e ed...............1
(ii) he e ms o employmen do no sui many wo ke s.................................................................2
(iii) he e is no ca ee p og ession in he ele an jobs....................................................................3
(i ) he e is oo much compe i ion om o he employe s.......................................4
( ) he e is a se e e sho age o sui able applican s.......................................................................5
( i) long/unsocial hou s ..................................................................................................................6
( ii) o he (please speci y) ...............................................................................................................7
Q.14 Thinking back o e he las yea , in e ms o he o e all p o i s o you company would you
say you business has shown:
A Subs an ial A Mode a e B oken A Mode a e A Subs an ial
Loss............1 Loss............2 E en......3 P o i ...........4 P o i .........5
Q.15 App oxima ely wha pe cen age o you i m’s non-manage ial employees ( ull- ime and pa -
ime) would you say a e in a T ade Union?
25 pe cen o less….…1 26 – 50 pe cen …….2 51-75 pe cen ….…3 76+pe cen ……4
32

33
Don’ know……5
Q.16a App oxima ely wha pe cen age o you company’s o al ope a ing cos s would be
accoun ed o by you o al wage bill ( o bo h ull- ime and pa - ime wo ke s,
including p op ie o s, owne s and manage s?)
Wage bill as a pe cen age o ope a ing cos s ___________ pe cen
33
34
PERSONS WORKING ON A FULL-TIME BASIS
Q.17A You men ioned ha you ha e a o al o _______ people wo king on a FULL-TIME basis in
you company (See Q.7 abo e). How many o hese ull- ime s a (including p op ie o s,
owne s and manage s) would you ha e in each o he occupa ional ca ego ies lis ed on his
Ca d [In . Show Ca d C].
OCCUPATIONAL CATEGORIES
Q17A
Numbe o FULL-TIME
Wo ke s
1.Manage s/P op ie o s
(e.g p oduc ion; ma ke ing; pu chasing; & compu e sys ems manage s)
2.Enginee ing/Science/Compu e /O he P o essionals
(e.g. ci il, chemical, elec ical, elec onic enginee s; physicis s, chemis s, echnologis s,
g adua e so wa e s a , a chi ec s, accoun an s, solici o s)
3.Enginee ing/Science and Compu e Technicians/O he Associa e
P o essionals (including Compu e Technical S a )
(e.g. elec ical, elec onic, p oduc ion, plas ics, ins umen a ion echnicians; labo a o y,
plas ics echnicians; sys ems analys s, compu e p og amme s; echnical suppo ;
compu e echnicians)
4.Cle ical/Sec e a ial
(e.g. elebusiness ope a o s, compu e ope a o s, cle ical supe iso s, elephonis s,
ypis s)
5.Skilled Main enance and Skilled P oduc ion
(e.g. elec icians, i e s, elec onic wo ke s, welde s, p in e s, ca pen e s)
6.P oduc ion Ope a i es
(e.g. mille s, bake s, dye s, bleache s, machinis s, pape make s, plas ics wo ke s)
7.T anspo and Communica ions
(e.g. d i e s, cou ie s, messenge s)
8. Sales
(e.g. shop assis an s, sales ep esen a i es)
9.Pe sonal Se ices
(e.g. ca e ing wo ke s, domes ic se an s and cleane s, laund y wo ke s)
10.Labou e s (incl. Secu i y) e c.
(e.g. dock labou e s, o he unskilled labou e s, ca e ake s, wa chmen,
secu i y gua ds)
TOTAL
Q.17B App oxima ely how many o you o al FULL-TIME wo ke s would all in o he ollowing
hou ly basic pay a es? [In . Show ca d D]
Q.17C App oxima ely how many FULL-TIME wo ke s in each o he hou ly pay a es a e male and
how many a e emale? [In . Show ca d D]
Q.17D App oxima ely how many FULL-TIME wo ke s in each o he hou ly pay a es a e aged 18
yea s o less, 19-25 yea s; 26 o mo e yea s? [In . Show ca d D]
34
35
Q.17E Do any wo ke s in each o hese hou ly basic pay g ades ecei e any o m o egula inge
bene i om he company (e.g. meal allowance, heal h insu ance, accommoda ion, e c). I so,
please speci y he na u e o hei inge bene i s. [In . Show ca d D]
No o FULL-TIME wo ke s
Q 17C Q 17D Q 17E
Hou ly Basic
Pay Ra es
Q 17B
Numbe
FULL-TIME
S a in hou ly
basic pay
g ade
Males Females 18 y s
old o
less
19-25
y s old 26 o
mo e
y s old
Recei e inge bene i s?
No Yes I Yes, speci y
£4.50 o less
pe hou
1 2 ___________________
£4.51 o £5.50
pe hou
1 2 ___________________
£5.51 o £6.50
pe hou
1 2 ___________________
Mo e han £6.50
pe hou
1 2 ___________________
To al
1 2 ___________________
[In : Check o als a e same as a Q.17A]
Q.17F Thinking now only o he _____________ FULL-TIME wo ke s e e ed o a Q.17B who a e
paid £4.50 o less pe hou . Please ell me how many all in o each o he ollowing
occupa ional g ades.[In . Show Ca d C.]
OCCUPATIONAL CATEGORIES
Q17F
Numbe o FULL-TIME
Wo ke s
1.Manage s/P op ie o s
(e.g p oduc ion; ma ke ing; pu chasing; & compu e sys ems manage s)
2.Enginee ing/Science/Compu e /O he P o essionals
(e.g. ci il, chemical, elec ical, elec onic enginee s; physicis s, chemis s, echnologis s,
g adua e so wa e s a , a chi ec s, accoun an s, solici o s)
3.Enginee ing/Science and Compu e Technicians/O he Associa e
P o essionals (including Compu e Technical S a )
(e.g. elec ical, elec onic, p oduc ion, plas ics, ins umen a ion echnicians; labo a o y, plas ics
echnicians; sys ems analys s, compu e p og amme s; echnical suppo ; compu e
echnicians)
4.Cle ical/Sec e a ial
(e.g. elebusiness ope a o s, compu e ope a o s, cle ical supe iso s, elephonis s, ypis s)
5.Skilled Main enance and Skilled P oduc ion
(e.g. elec icians, i e s, elec onic wo ke s, welde s, p in e s, ca pen e s)
6.P oduc ion Ope a i es
(e.g. mille s, bake s, dye s, bleache s, machinis s, pape make s, plas ics wo ke s)
7.T anspo and Communica ions
(e.g. d i e s, cou ie s, messenge s)
8. Sales
(e.g. shop assis an s, sales ep esen a i es)
9.Pe sonal Se ices
(e.g. ca e ing wo ke s, domes ic se an s and cleane s, laund y wo ke s)
10.Labou e s (incl. Secu i y) e c.
(e.g. dock labou e s, o he unskilled labou e s, ca e ake s, wa chmen, secu i y
gua ds)
TOTAL
[In : Check o al wi h Q17B]
35
36
Q.17G App oxima ely how many o hese FULL-TIME wo ke s who a e paid £4.50 o less pe hou
would be paid be ween £4.00 o £4.50 and £3.99 o less pe hou .
Numbe o Full- ime Wo ke s
£4.00 - £4.50 pe hou
£3.99 o less pe hou
To al
[In . Check o al econciles wi h Q17b]
Q.17H Once again, hinking in e ms o you FULL-TIME wo ke s (including p op ie o s, owne s and
manage s) in his basic pay ca ego y o £4.50 o less pe hou . When FULL-TIME s a in his
pay ca ego y s a wi h you company app oxima ely how many days ini ial aining do hey
ecei e o b ing hem up o a minimum le el o p o iciency? I would like you o ell me how
many days ini ial aining hey ecei e (i) on- he-job while con inuing wi h hei job o
p oduc i e unc ion in he company; (ii) in-house on he company’s p emises bu no on- he-
job; (iii) ou o he company.
[In : I none w i e NONE. Do no lea e blank].
(i) On- he-job ____________ days o ini ial aining
(ii) In-house (no on- he-job) ____________ days o ini ial aining
(iii) Ou o he company ____________ days o ini ial aining.
[
In : I none w i e NONE. Do no lea e blank]
Q.17I While hese ull- ime employees a e unde going his ini ial aining do hey ecei e a educed
wage?
Yes.........................1 No .....................2
36
37
PERSONS WORKING ON A PART-TIME BASIS
Q.18A You men ioned ha you had a o al o _______ people wo king on a PART-TIME basis in
you company (See Q.7 abo e). How many o hese pa - ime s a (including p op ie o s,
owne s and manage s) would you ha e in each o he occupa ional ca ego ies lis ed on his
Ca d [In . Show Ca d C].
OCCUPATIONAL CATEGORIES
Q18A
Numbe o PART-TIME
Wo ke s
1.Manage s/P op ie o s
(e.g p oduc ion; ma ke ing; pu chasing; & compu e sys ems manage s)
2.Enginee ing/Science/Compu e /O he P o essionals
(e.g. ci il, chemical, elec ical, elec onic enginee s; physicis s, chemis s, echnologis s,
g adua e so wa e s a , a chi ec s, accoun an s, solici o s)
3.Enginee ing/Science and Compu e Technicians/O he Associa e
P o essionals (including Compu e Technical S a )
(e.g. elec ical, elec onic, p oduc ion, plas ics, ins umen a ion echnicians; labo a o y,
plas ics echnicians; sys ems analys s, compu e p og amme s; echnical suppo ;
compu e echnicians)
4.Cle ical/Sec e a ial
(e.g. elebusiness ope a o s, compu e ope a o s, cle ical supe iso s, elephonis s,
ypis s)
5.Skilled Main enance and Skilled P oduc ion
(e.g. elec icians, i e s, elec onic wo ke s, welde s, p in e s, ca pen e s)
6.P oduc ion Ope a i es
(e.g. mille s, bake s, dye s, bleache s, machinis s, pape make s, plas ics wo ke s)
7.T anspo and Communica ions
(e.g. d i e s, cou ie s, messenge s)
8. Sales
(e.g. shop assis an s, sales ep esen a i es)
9.Pe sonal Se ices
(e.g. ca e ing wo ke s, domes ic se an s and cleane s, laund y wo ke s)
10.Labou e s (incl. Secu i y) e c.
(e.g. dock labou e s, o he unskilled labou e s, ca e ake s, wa chmen,
secu i y gua ds)
TOTAL
Q.18B App oxima ely how many o you o al PART-TIME wo ke s would all in o he ollowing
hou ly basic pay a es? [In . Show ca d D]
Q.18C App oxima ely how many PART-TIME employees in each o he hou ly pay a es a e male
and how many a e emale? [In . Show ca d D]
Q.18D App oxima ely how many PART-TIME employees in each o he hou ly pay a es a e aged 18
yea s o less, 19-25 yea s; 26 o mo e yea s? [In . Show ca d D]
37

38
Q.18E Do any wo ke s in each o hese hou ly basic pay g ades ecei e any o m o egula inge
bene i om he company (e.g. meal allowance, heal h insu ance, accommoda ion, e c). I so,
please speci y he na u e o hei inge bene i s. [In . Show ca d D]
No o PART-TIME wo ke s
Q 18C Q 18D Q 18E
Hou ly Basic
Pay Ra es
Q 18B
Numbe
PART-TIME
S a in hou ly
basic pay
g ade
Males Females 18
y s
old o
less
19-25
y s old
26 o
mo e
y s old
Recei e inge bene i s?
No Yes I Yes, speci y
£4.50 o less
pe hou
1 2 _____________________
£4.51 o £5.50
pe hou
1 2 _____________________
£5.51 o £6.50
pe hou
1 2 _____________________
Mo e han £6.50
pe hou
1 2 _____________________
To al
1 2 _____________________
[In : Check o als a e he same as Q.18A]
38
39
Q.18F Thinking now only o he _____________ PART-TIME wo ke s e e ed o a Q.18B who a e
paid £4.50 o less pe hou . Please ell me how many all in o each o he ollowing
occupa ional g ades.[In show Ca d C]
OCCUPATIONAL CATEGORIES
Q18F
Numbe o PART-TIME
Wo ke s
1.Manage s/P op ie o s
(e.g p oduc ion; ma ke ing; pu chasing; & compu e sys ems manage s)
2.Enginee ing/Science/Compu e /O he P o essionals
(e.g. ci il, chemical, elec ical, elec onic enginee s; physicis s, chemis s, echnologis s,
g adua e so wa e s a , a chi ec s, accoun an s, solici o s)
3.Enginee ing/Science and Compu e Technicians/O he Associa e P o essionals
(including Compu e Technical S a )
(e.g. elec ical, elec onic, p oduc ion, plas ics, ins umen a ion echnicians; labo a o y,
plas ics echnicians; sys ems analys s, compu e p og amme s; echnical suppo ;
compu e echnicians)
4.Cle ical/Sec e a ial
(e.g. elebusiness ope a o s, compu e ope a o s, cle ical supe iso s, elephonis s,
ypis s)
5.Skilled Main enance and Skilled P oduc ion
(e.g. elec icians, i e s, elec onic wo ke s, welde s, p in e s, ca pen e s)
6.P oduc ion Ope a i es
(e.g. mille s, bake s, dye s, bleache s, machinis s, pape make s, plas ics wo ke s)
7.T anspo and Communica ions
(e.g. d i e s, cou ie s, messenge s)
8. Sales
(e.g. shop assis an s, sales ep esen a i es)
9.Pe sonal Se ices
(e.g. ca e ing wo ke s, domes ic se an s and cleane s, laund y wo ke s)
10.Labou e s (incl. secu i y) e c.
(e.g. dock labou e s, o he unskilled labou e s, ca e ake s, wa chmen, secu i y gua ds)
TOTAL
[In : Check o al wi h Q18B]
Q.19a App oxima ely how many o hese PART-TIME wo ke s who a e paid £4.50 o less pe hou
would be paid be ween £4.00 o £4.50 and £3.99 o less pe hou .
Numbe o Pa - ime Wo ke s
£4.00 - £4.50 pe hou
£3.99 o less pe hou
To al
[In . Check o al econciles wi h Q18b]
39
40
Q.19b Once again, hinking in e ms o you PART-TIME wo ke s (including p op ie o s, owne s
and manage s) in his basic pay ca ego y o £4.50 o less pe hou . When PART-TIME s a in
his pay ca ego y s a wi h you company app oxima ely how many days ini ial aining do
hey ecei e o b ing hem up o a minimum le el o p o iciency? I would like you o ell me
how many days ini ial aining hey ecei e (i) on- he-job while con inuing wi h hei job o
p oduc i e unc ion in he company; (ii) in-house on he company’s p emises bu no on- he-
job; (iii) ou o he company.
[In : I none w i e NONE. Do no lea e blank].
(i) On- he-job ____________ days o ini ial aining
(ii) In-house (no on- he-job) ____________ days o ini ial aining
(iii) Ou o he company ____________ days o ini ial aining
[In : I none w i e NONE. Do no lea e blank]
Q.19c While hese pa - ime employees a e unde going his ini ial aining do hey ecei e a educed
wage?
Yes.................1 No ................. 2
40
41
VACANCIES, HIRINGS AND DEPARTURES OF LAST 12 MONTHS - £5.50 o £6.50 PER HOUR
Q.20 I would like you o hink back o e he las yea abou acancies which you company
had in he basic pay ange £5.50 o £6.50 pe hou (abou £215 - £255 pe week). By
acancies I am e e ing o unme demand o labou whe e he posi ions we e/a e
unoccupied and you we e/a e ac ually sea ching o employees. How many acancies
in he basic pay ange o £5.50 - £6.50 pe hou (abou £215 - £255 pe week) did you
company ha e in he las yea (including any cu en ou s anding acancies)?
_________ acancies in pay ange £5.50 – £6.50 pe hou
[In . I none, w i e NONE, do no lea e blank]
Q.21 How many people we e HIRED in o he basic pay ange o £5.50 - £6.50 pe hou
(abou £215 - £255 pe week) in he las yea ?
__________ pe sons hi ed wi hin ange o £5.50 - £6.50
[I none please w i e NONE do no lea e blank]
Q.22 How many people LEFT, RETIRED OR WERE DISMISSED om posi ions in he
basic pay ange o £5.50 - £6.50 pe house (abou £215 – £255 pe week) in he las
yea ?
__________ pe sons le , e i ed o we e dismissed wi hin ange o £5.50 - £6.50
[I none please w i e NONE do no lea e blank]
VACANCIES, HIRINGS AND DEPARTURES OF LAST 12 MONTHS - £4.50 o LESS PER HOUR
Q.23 I would now like you o hink back o e he las yea abou acancies which you
company had in he basic pay ange o £4.50 o less pe hou (abou £175 o less pe
week). By acancies I am e e ing o unme demand o labou whe e he posi ions
we e/a e unoccupied and you we e/a e ac ually sea ching o employees. How many
acancies in he basic pay ange £4.50 o less pe hou (abou £175 o less pe week)
did you company ha e in he las yea (including any cu en , ou s anding acancies).
__________ acancies in pay ange £4.50 o less.
[In . I none, w i e NONE, do no lea e blank]
Q.24 How many people we e HIRED in o he basic pay ange o £4.50 o less pe hou
(abou £175 o less pe week) in he las yea ?
__________ pe sons le , e i ed o we e dismissed wi hin ange o £4.50 o less
[I none please w i e NONE do no lea e blank]
41