Labour Market

Chancellor wrong to believe “pay can be pushed up by central diktat without damaging consequences”


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Prof Len Shackleton quoted by FT Adviser

Responding to the Chancellor’s decision to raise the national minimum wage, IEA Editorial and Research Fellow Prof Len Shackleton warned that “the Chancellor has seemingly bought into Labour’s view that pay can be permanently pushed up by central diktat without damaging consequences – namely reduced employment growth.”

Quoted by the FT Adviser, Len pointed out that “big increases in minimum wages will raise employer costs disproportionately in those poorer regions of the country the Prime Minister wants to help.”

Read the full article here.



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