© 2010 The Authors
Fiscal Studies © 2010 Institute for Fiscal Studies. Published by Blackwell Publishing Ltd, 9600 Garsington Road, Oxford, OX4
2DQ, UK, and 350 Main Street, Malden, MA 02148, USA.
The UK National Minimum Wage in Retrospect
PETER DOLTON, CHIARA ROSAZZA BONDIBENE and JONATHAN WADSWORTH
APPENDIX A. ROBUSTNESS CHECKS
Table A1. Incremental differences-in-differences wage inequality estimates (including
proportion of workers in the manufacturing sector, as a control for industry)
50:5 ratio 50:10 ratio
Total Total Total Total
16–retirement 16–retirement 16–retirement 16–retirement
406 areas 140 areas 406 areas 140 areas
NMW 0.092** 0.096** 0.054** 0.061**
base period (0.006) (0.010) (0.005) (0.007)
NMW*1999 -0.035** -0.051** -0.008 -0.006
(0.008) (0.012) (0.006) (0.009)
NMW*2000 -0.053** -0.051** -0.027** -0.029**
(0.007) (0.010) (0.006) (0.009)
NMW*2001 -0.057** -0.061** -0.031** -0.043**
(0.007) (0.011) (0.006) (0.009)
NMW*2002 -0.067** -0.080** -0.032** -0.049**
(0.008) (0.012) (0.006) (0.010)
NMW*2003 -0.062** -0.065** -0.036** -0.042**
(0.007) (0.011) (0.006) (0.009)
NMW*2004 -0.068** -0.074** -0.043** -0.050**
(0.007) (0.011) (0.005) (0.008)
NMW*2005 -0.091** -0.095** -0.054** -0.053**
(0.007) (0.012) (0.006) (0.009)
NMW*2006 -0.076** -0.098** -0.046** -0.057**
(0.008) (0.012) (0.006) (0.010)
NMW*2007 -0.102** -0.116** -0.064** -0.077**
(0.007) (0.013) (0.006) (0.011)
** significant at 5 per cent level. * significant at 10 per cent level.
Notes: All regressions contain year dummies, area fixed effects and within-area time-varying controls.
Heteroscedasticity autocorrelation (HAC) robust standard errors are given in parentheses. The NMW variable is the
proportion of employees in each area paid at or below the national minimum wage (Share).