Evaluating the Introduction of a National Minimum Wage: Evidence from a New Survey of Firms in Ireland

In April 2000 the Irish government introduced a national minimum wage of IR 4.40 pound ((sic)5.58) an hour. We use data from a specifically designed survey of firms to estimate the employment effects of this change. Employment growth among firms with low-wage workers prior to the legislation was no different from that of firms not affected by the legislation. A more refined measure of the minimum wage, however, suggests that the legislation may have had a negative effect on employment for the small number of firms most severely affected by the legislation. However, the size of these effects is relatively modest.