Findings
These results suggest that if policymakers wish to lift the incomes of low-paid employees who live in low-income households, then a higher minimum wage might be an effective strategy, as long as netherlands rcs data they do not set the minimum wage so high as to substantially lower the employment rate of these people.
However, it also highlights that the minimum wage is not particularly well targeted at those with low incomes, as many low-wage employees are members of middle- or high-income households. link between someone’s hourly wage and their household income can be mediated by a number of factors, in particular the pay of other people they live with.
It will therefore be interesting to see how the living standards of low-paid employees change over the coming years as the National Living Wage continues to increase from the current £7.83 rate to reach its 2020 target rate of £8.57 (according to latest estimates).