Do higher minimum wages benefit health? Evidence From the UK

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Abstract

This study examines the link between minimum wages and health outcomes by using the introduction of the National Minimum Wage (NMW) in the United Kingdom in 1999 as an exogenous variation of earned income. A test for health effects by using longitudinal data from the British Household Panel Survey for a period of ten years was conducted. It was found that the NMW significantly improved several measures of health, including self‐reported health status and the presence of health conditions. When examining potential mechanisms, it was shown that changes in health behaviors, leisure expenditures, and financial stress can explain the observed improvements in health.
Original languageEnglish
Pages (from-to)828-852
Number of pages25
JournalJournal of Policy Analysis and Management
Volume36
Issue number4
Early online date3 Aug 2017
DOIs
Publication statusPublished - 31 Oct 2017

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Keywords

  • health outcomes
  • minimum wage
  • economic conditions

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