Today the ESRI and the Low Pay Commission jointly published “A Study of Sub-Minimum Wage Rates for Young People”, a new report that examines international practice on the extent to which sub-minimum wage rates are paid within National Minimum Wage (NMW) frameworks and how such wage rates are generally designed.
The report also uses historical data from 2009 to examine the extent to which the estimated incidence of the NMW in Ireland varies according to the measurement approach adopted, and to identify broad characteristics of minimum wage employees and employers of minimum wage workers.
The first component of the research is based on a review of the relevant international literature, while data from the Central Statistics Office’s October 2009 National Employment Survey (NES) was used for the second component.
The incidence and determinants of minimum wage employment in Ireland
Commenting on the research, Dr. Elish Kelly, Senior Research Officer at the ESRI, stated “One debate around sub-minimum rates is the extent to which variations in the sub-minimum wage rates will impact the extent of early school leaving. Given the low incidence of young people in receipt of the youth rate in Ireland, this would suggest that such direct impacts, at least in 2009, are likely to have been small.”
Minister Breen, Minister for Employment and Small Business said, “I asked the Low Pay Commission to report on prevalence and impact of sub-minimum wage rates for young people, to give a better understanding of the impact of sub-minimum wage rates and the extent to which they are applied. The joint report published today by ESRI and the Low Pay Commission will assist the Government to understand the impact of sub-minimum wage rates for young people. I would like to thank the Low Pay Commission and ESRI for completing this valuable work.”
Dr Donal de Buitléir, Chairman of the Low Pay Commission, welcomed the publication of the research paper, which was produced under a Research Partnership agreement between the Low Pay Commission and the ESRI. He commented that the Commission had relied on the research findings in its Report to the Minister in October last on the sub-minima rates of the National Minimum Wage. “There is comparatively little research available in Ireland in this area, so it is important that the Commission supports research to enable it to make evidence-based findings in relation to minimum wages issues.”
The ESRI works towards a national vision of ‘Informed policy for a better Ireland’. This means producing high-quality analysis to provide robust evidence for policymaking, with the goals of research excellence and policy impact.
The ESRI produces research that contributes to understanding economic and social change in the new international context and that informs public policymaking and civil society in Ireland.