Health Professions
4 years ago

New minimum wage structure leads to higher wages and lower care quality.

LSE Research Online Documents on Economics
Changing the structure of minimum wages: firm adjustment and wage spillovers
Giulia Giupponi, Stephen Machin

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The UK changed its minimum wage policy in 2016, creating a higher wage for workers aged 25 and over. This affected wages in the care homes industry, but didn't lead to job losses. Instead, the quality of care services suffered. Younger workers also saw their wages rise, without losing jobs. Employers likely did this to be fair to all workers.