Identifying and Explaining Patterns of NMW Receipt in Britain 1999-2004

Abstract

We examine patterns of NMW receipt and labour market trajectories of NMW workers over a six year period from 1999-2004 using data drawn from the BHPS. In particular we:

1. Examine patterns and sequences of NMW receipt over the six year period;
2. Examine transitions between NMW receipt, higher paying employment and non-employment; and
3. Relate patterns of NMW receipt over the period to a range of individual, household and job-related characteristics.

The aims of this study are to explore the longer term labour market outcomes of NMW workers, and to identify whether or not NMW jobs are stepping stones into higher paying employment, or instead whether NMW workers tend to stay in low wage jobs for several years, perhaps within a low-pay no-pay cycle.