Minimum wage increase in UK care homes boosts efficiency, maintains employment.
The study looked at how the introduction of the UK National Minimum Wage affected wages and monitoring in residential care homes. The researchers found that higher wages were balanced out by lower monitoring costs, suggesting that the Minimum Wage may have acted as an Efficiency Wage. This means that employers didn't just increase work intensity to offset the wage increase. The findings support the idea that the Minimum Wage can have positive effects on employment in low-wage sectors like care homes.