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The impact of a minimum wage increase on hours worked

Heterogeneous effects by gender and sector

Bibliographic Data

ID9727649
AuthorsPearse Redmond (0000-0001-8272-8596, Economic and Social Research Institute, corresponding author), Paul Redmond (Economic and Social Research Institute), Seamus Mcguinne (0000-0003-1729-3017, Economic and Social Research Institute), Seamus McGuinness (Economic and Social Research Institute)
Year2025
Volume92
Issue365
Pages84-106
Publication date2025-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ecca.12555
OpenAlexW4403614118
LanguageEN
Citations received1
References cited48

A minimum wage increase could lead to adverse employment effects for certain subgroups of minimum wage workers, while leaving others unaffected. This heterogeneity could be overlooked in studies that examine the overall population of minimum wage workers. In this paper, we test for heterogeneous effects of a minimum wage increase on the hours worked of minimum wage employees in Ireland. For all minimum wage workers, we find that a 10% increase in the minimum wage leads to a one‐hour reduction in weekly hours worked, equating to an hours elasticity of approximately −0.3. However, for industry workers and those in the accommodation & food sector, the impact is larger, with elasticity −0.8. We also find a negative impact on the hours worked among men on minimum wage, with no significant effect for women. This is due to the disproportionate number of men working in sectors that show the greatest impact on hours. In line with suggestions from the recent literature, we attempt to identify directly those in receipt of minimum wage using hourly wage data, while also studying the dynamic impact on hours worked over multiple time periods using a fully flexible difference‐in‐differences estimator

Demographic economics · Economics · Labour economics · Low wage · Minimum wage · Wage · Employment and Welfare Studies · Gender, Labor, and Family Dynamics · Labor market dynamics and wage inequality

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Unique citing works1
Citations per year1
Citation span2026 - 2026 (1)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 1

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