Abstract
This paper investigates the impact of the UK’s National Minimum Wage (NMW) on wage inequality across plants using a unique monthly panel data set of British plants. We find an effect of the NMW on low-wage plants, as we would expect, as well as evidence of spill-over effects across plants operating in low-wage localities. Investigation of the timing of the impact suggests that most of the effect is contemporaneous with changes in the minimum wage, though these estimates are less precise. No significant effect on employment is found.
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