Business leaders call for higher UK minimum wage
A group of business leaders has called for an increase in the UK’s minimum wage, following the country’s return to economic growth.
The letter goes on to argue that: “A stronger minimum wage will benefit businesses, improve public finances, and help tackle low pay […] We must ensure that all employees are benefiting from the recovery.”
The economic impact of minimum wage legislation is controversial, with mixed evidence of its risks and benefits. In his analysis, our author David Neumark argues that introducing and raising minimum wages reduce the number of jobs available to lower-skilled workers. He further argues that minimum wages do not necessarily benefit the poorest households.
The minimum wage was first introduced in the UK in 1999 and is currently £6.31 an hour for workers over 21.
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