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Wages, experience and training of women over the lifecycle

Journal article | Journal of Labor Economics

We investigate the role of training in reducing the gender wage gap using the British Household Panel Survey. On the basis of a life-cycle model and using tax and welfare benefit reforms as a source of exogenous variation, we evaluate the role of formal training and experience in defining the evolution of wages and employment careers, conditional on education. Training is potentially important in compensating for the effects of children, especially for women who left education after completing high school, but does not fundamentally change the wage gap resulting from labor market interruptions following child birth.

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Report summary
We examine the effects that the National Living Wage has had on wages, employment, and households’ incomes after accounting for taxes and benefits.
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The Conservatives’ and Labour’s plans for minimum wages would take us into uncharted waters. That calls for a careful and incremental process to ensure that, if the employment prospects of the low-paid do start to be impacted, policymakers can change course before it is too late.
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