Heterogeneous Effects of a Minimum Wage Increase on Hours Worked

Abstract

The mission of the Economic and Social Research Institute is to advance evidencebased policymaking that supports economic sustainability and social progress in Ireland. ESRI researchers apply the highest standards of academic excellence to challenges facing policymakers, focusing on 12 areas of critical importance to 21st Century Ireland.The Institute was founded in 1960 by a group of senior civil servants led by Dr T. K. Whitaker, who identified the need for independent and in-depth research analysis to provide a robust evidence base for policymaking in Ireland.Since then, the Institute has remained committed to independent research and its work is free of any expressed ideology or political position. The Institute publishes all research reaching the appropriate academic standard, irrespective of its findings or who funds the research.The quality of its research output is guaranteed by a rigorous peer review process. ESRI researchers are experts in their fields and are committed to producing work that meets the highest academic standards and practices.The work of the Institute is disseminated widely in books, journal articles and reports. ESRI publications are available to download, free of charge, from its website. Additionally, ESRI staff communicate research findings at regular conferences and seminars.The ESRI is a company limited by guarantee, answerable to its members and governed by a Council, comprising 14 members who represent a cross-section of ESRI members from academia, civil services, state agencies, businesses and civil society. The Institute receives an annual grant-in-aid from the Department of Public Expenditure and Reform to support the scientific and public interest elements of the Institute's activities; the grant accounted for an average of 30 per cent of the Institute's income over the lifetime of the last Research Strategy. The remaining funding comes from research programmes supported by government departments and agencies, public bodies and competitive research programmes.

Labor Market Institutions and Employment

“…Nguyen [84] 2023 Vietnam 2012-2020 Annual Labor Force Surveys Minimum wages did not appear to have a significant effect on employment, but there is a considerable negative impact on workers' total working hours. [85] 2023 Ireland 2012-2018 Administrative Data Sources (EAADS)…”

Sub-minimum wages in Ireland

“…In Table 6.3 we show the incidence of sub-minimum wage and minimum wage employment by various employee characteristics, including gender, age, educational attainment, nationality (Irish or non-Irish) and sector. As previous research has highlighted that minimum wage employment is heavily concentrated in the accommodation, food and retail sectors (Redmond and McGuinness, 2023), we create a variable to indicate whether an employee is employed in these sectors. Many other sectors have very low numbers of sub-minimum wage employees and therefore cannot be examined separately due to too few observations.…”

Wages and working conditions of non-Irish nationals in Ireland

“…This study demonstrates both the potential and also the importance of having such data, in the form of the Central Statistics Office's (CSO) Labour Force Survey Earnings Analysis using Administrative Data Sources (LFSEAADS), so as to inform understanding and policy. Indeed, these wage data are necessary for broader policy relating to wages, not just for the analysis of the migrant wage gap and migrant integration policy, but other aspects of wage policy such as the operation of the national minimum wage (Redmond and McGuinness, 2022), the gender pay gap (Doorley et al, 2021) and the public-private wage gap (CSO, 2019). Having these data available for research in a timely fashion, while continually developing and improving it, is important for both research and policy on wages in Ireland, and for making the best use of the considerable resource it represents.…”

“…For the most part, the LFSEAADS data are used by the CSO to examine public/private sector pay differentials in Ireland. 38 The data are also used to study the gender pay gap (Doorley et al, 2021) and the impact of the minimum wage (Redmond and McGuinness, 2022). Key strengths of these data for such policyrelated analyses include its large annual sample size, as shown in Table 3.1, and the reliability of its earnings data, which is due to the fact that they are derived from an administrative earnings data source, rather than being self-reported (P35L).…”