Identifying and explaining patterns of NMW receipt in Britain 1999-2004: report prepared for the Low Pay Commission

Publication type



Publication date

December 1, 2006


In this report we examine patterns of National Minimum Wage (NMW) receipt and labour market trajectories of NMW workers over a six year period from 1999-2004 using data drawn from the British Household Panel Survey (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 nonemployment;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. In doing so, we distinguish between individuals who were continuously employed over the sample period, and those who experienced spells of non-employment.





Referred to in 'In praise of panel surveys'

Is referenced by: Low Pay Commission (2014) National Minimum Wage: Low Pay Commission Report 2014: presented to Parliament by the Secretary of State for Business, Innovation and Skills by Command of Her Majesty March 2014. [London]: Stationery Office.

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