UK SBS CR150009BIS ‘An Investigation into the Impact of the Minimum Wage Regime on Labour Market Outcomes of Young Workers’

Further examination of the impact of the current minimum wage regime on the labour market outcomes of young people aged 16–24. We are particularly interested in three key areas:

1. The impact of the smaller increases in the youth rates between 2010 and 2014, including the freeze in October 2012.
2. Longer-term analysis of the change to age 21 of entitlement to the adult rate in October 2010.
3. The impact of changes to the education participation age in England.

This research will inform the LPC’s assessment of the current relativities of the youth minimum wage rates (for 16–17 year olds and 18–20 year olds) to each other and to the adult rate and their scope.

The aim of this study is threefold:

• a.to investigate the effect of the increases in the minimum wage for youths that have been smaller than those for adults since 2010, including the freeze in October 2012;
• b.to investigate the longer-term effects of the change in the age of entitlement to the adult rate to age 21; and
• c.to assess the impact of changes to the participation age in England and its implications for the youth minimum wage rates and the Apprentice Rate.