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Pay determination in small firms in the UK: the case of the response to the National Minimum Wage
Author(s) -
Gilman Mark,
Edwards Paul,
Ram Monder,
Arrowsmith James
Publication year - 2002
Publication title -
industrial relations journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.525
H-Index - 3
eISSN - 1468-2338
pISSN - 0019-8692
DOI - 10.1111/1468-2338.00219
Subject(s) - wage , minimum wage , product market , variable (mathematics) , economics , product (mathematics) , labour economics , business , microeconomics , incentive , mathematical analysis , geometry , mathematics
Pay determination in small firms is widely expected to follow the dictates of the market. Research on 81 firms in three competitive sectors finds, instead, loosely defined and variable pay structures. This variability is explained in terms of the interplay between labour and product markets, firms’ own choices, and ‘shocks’ such as the National Minimum Wage. This analysis thus contributes to developing institutional theories of labour markets and pay systems.