The Impact of the National Minimum Wage on the Textiles and Clothing Industry

This paper evaluates the impact of the National Minimum Wage on the UK textiles and clothing industry. Studies of minimum wages have tended to focus on the consequences of wage increases for employment while neglecting the dynamic processes of adjustment that such increases may give rise to. A particular feature of the present study is the attention paid to adjustment processes. The paper focuses on the West Yorkshire region and draws on a combination of questionnaire survey and interview data. The study describes employers' responses to the minimum wage and examines the implications for wages, employment, work organization, and training and development activity. Particular attention is given to the consequences of employers' responses for younger workers. The study concludes by addressing a number of policy-related issues.