03 October 2023

The Low Pay Commission (LPC) has published the ‘National Living Wage impacts by geography, age and gender’ report. This is an in-house report from the LPC, using geography, gender and age to look at the effects of the National Living Wage (NLW) to March 2020.

The research published looks at the impact of the NLW on a variety of labour market outcomes between its introduction in April 2016 and March 2020, the onset of the pandemic. It uses geography, gender, and age to identify different groups and then compares the labour market outcomes of those with high minimum wage coverage or high bite (areas with low average wages) with those groups which are less affected by the minimum wage.

This research finds that wages increased faster for those groups most affected by the minimum wage but that this had not led to detrimental effects on employment. These increases were higher at lower percentiles of the pay distribution. In line with previous findings, the LPC found no evidence of significant negative impacts on employment or hours across the whole period. However, findings showed that the NLW may have boosted participation, as inactivity was significantly reduced without a corresponding increase in unemployment.

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