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Southampton based research on the interactions of a minimum wage policy and tax evasion has had a direct and clearly acknowledged impact on shaping the labour market policies of Hungary and other Southern European countries, while its research on the role of universal versus targeted benefits on employment has had a significant impact on Swedish fiscal policy. Looking at labour market policies in a broader context and from a behavioural economics point of view (e.g. payroll giving), our findings on charitable giving and workers' motivation have also been used by the UK government's Behavioural Insights Team and impacted its recommendations on giving. The same research is currently influencing US policy on the tax treatment of charitable contributions.
Research by Alan Manning and colleagues at LSE's Centre for Economic Performance (CEP) has contributed to widespread acceptance of the view that minimum wages set at an appropriate level are a valuable tool of public policy. CEP researchers had a direct impact on the design of the UK's National Minimum Wage (NMW) and thus on the living standards of poorer workers and their families. They provided the intellectual context for the policy, advised on its implementation and evaluated its effects. CEP research has had some initial impact on the introduction of the minimum wage in Hong Kong. It has also influenced debates around the world about the introduction or modification of minimum wages.
The UK National Minimum Wage (NMW) is a mandatory wage floor, set annually by government following recommendations from the Low Pay Commission (LPC) that directly affect around a million low-wage workers, their families and their employers and influence the UK economy more widely. Research at York on the effects of minimum wages on the labour market outcomes of low- wage workers, particularly on hours worked, wage growth and the incentives for young people to acquire skills/education, has contributed to the LPC's evidence-base and influenced recommendations by the LPC on the NMW rates. In addition the underpinning research has informed the recent Living Wage policy debate (nationally and locally in York) and has had impact via two important York employers (City of York Council (CYC) and Joseph Rowntree Foundation/Joseph Rowntree Housing Trust (JRF/JRHT)) in relation to their deliberations on the adoption (CYC) and the benefits of adopting this voluntary wage floor within their organisations; decisions that directly affected more than 600 York-based employees in early 2013.
Professor Mark Stewart analysed the impact of the National Minimum Wage (NMW), providing a research-based answer to the question of whether a minimum wage would protect low skilled workers or leave them worse off by reducing demand for labour. Stewart analysed the NMW after it was introduced in 1999 and through subsequent upratings and consistently found negligible employment effects, modest hours effects, and little evidence of spillover effects. Stewart published reports and journal publications, supplying evidence that directly assisted the Low Pay Commission's (LPC) policy decisions. The minimum wage is now established policy, increasing earnings for millions of the UK's lowest-income workers and reducing income inequality and the gender pay gap.
Around 55,000 young workers in Britain have benefited from a 20 per cent wage increase as a direct result of research by Richard Dickens of the University of Sussex. His work led to a legislative change (which became effective in October 2010) whereby the starting age for eligibility for the adult National Minimum Wage (NMW) was reduced from 22 to 21 years old.
More generally, Dickens' research on the wage and employment effects of the NMW has long informed the recommendations of the Low Pay Commission (LPC) — on the rate at which the NMW is set, on the associated regulations and on the LPC's evaluation of the impact of the NMW. His research has provided the LPC and the government with strong validation for the use of the NMW as a policy tool for tackling low incomes and wage inequality. It also allays fears that the NMW might lead to a damaging wage-price spiral.
Research on the post-apartheid South African labour market showed high levels of economic inactivity among black people concentrated in certain areas and high employee turnover among these groups. An integrated development programme was developed in and around Port Elizabeth tailored to address specific failings in labour market supply and demand identified by the research findings. This brought greatly improved employment rates for over 3,000 participating job seekers, with more than 80% achieving a positive outcome in terms of employment or further training. Furthermore, the programme reduced turnover rates for those employers involved in the project, and built the capacity of Union workforce representatives. The development programme comprising integrated training workshops and employer support is now being rolled out across South Africa.
European employment research at Manchester Business School's European Work and Employment Research Centre (EWERC) has had a significant impact on international policymaking bodies, specifically the European Commission (EC), the European Trade Union Confederation (ETUC) and the International Labour Organisation (ILO). Demonstrated policy impact includes: the defining and strengthening of a gender mainstreaming and gender pay policy in Europe; technical improvements in the European Commission's approach to the European Employment Strategy (EES) (which all EU member states are required to report on and implement); and greater precision (regarding up-to-date data and the functioning of labour market institutions) in EC and ILO policy recommendations on low wage work, minimum wages and regulation for decent work.
Research by Christopher Pissarides and his LSE colleague Rachel Ngai has led to official acceptance by European Union (EU) policy-makers that a major source of new jobs will be sectors that provide services to the general public, notably healthcare and low-skill domestic services. The European Commission was initially hostile to this view, preferring the emphasis of the EU's so-called `Lisbon strategy' on job creation in advanced technology industries. But the Commission's Growth Survey 2012 indicates that it has now adopted Pissarides' approach, and at the `Jobs for Europe' summit in September 2012 he was invited to deliver a keynote speech on the same platform as the `three Presidents' (of the Commission, the European Council and the European Parliament). His policy recommendations — including the need for better incentives for the `marketisation' of activity in the care and unskilled services sectors — are now part of the official EU agenda on job creation. He has also advised national governments, including in his native Cyprus, where he was appointed president of the government's Economic Policy Council in 2013.
Research on the economic effects of minimum wages undertaken by Professor Stephen Machin and his co-authors changed the policy context before a National Minimum Wage (NMW) was introduced in April 1999. That and subsequent research, as well as Machin's appointment as Commissioner in 2007, have provided the guiding logic for the operations of the Low Pay Commission, the government body that makes recommendations on setting the NMW. As a result, research has directly influenced the annual setting of the NMW through 2008-2013, affecting the wages of over a million low-paid UK workers. Research has subsequently influenced policy debate in the UK, and in other countries including Germany, Hong Kong and Australia.
A new methodology has been developed that enables a more flexible approach to understanding the effects of immigration on the labour market and the native-born labour force. The key finding is that the effect of immigration on wages and employment depends on the extent of the substitutability between immigrant and native born labour. This substitutability differs at different skill levels, so that immigration has a greater effect on unskilled native born workers. This new methodology's findings have informed the debate over labour market effects and have influenced the development of related policies by Government and other key stakeholders.
The evidence produced by Professor Wadsworth's research directly has shaped or influenced policy made by government. In particular, the research has been used as input into several key policy recommendations made by the Home Office sponsored Migration Advisory Committee (MAC) (of which Wadsworth is a member) to inform the coalition government's declared aim of achieving a reduction in the levels of net migration in the current parliament to the tens of thousands. The research has been cited by numerous stakeholders in the debate on the impact of rising immigration on the labour market. There are numerous examples of citations in a public discussion, consultation document or judgement.