The adaptation of hospitality and retail firms to the NMW: a focus on the impact of age-related clauses

A lower national minimum wage for 18- to 21-year-olds and the exclusion of all workers under 18 prompted fears of a distortion in the British labour market and an undermining of training initiatives. Empirical data collected from employers in two low paying sectors, revealing the full utilisation of young workers and under-utilisation of training initiatives, ensure these fears are not justified and that the government's basis for the lower rate cannot be substantiated.