Detailed Information on Publication Record
2023
Minimum wage and tolerance for high income
FAZIO, Andrea and Tommaso REGGIANIBasic information
Original name
Minimum wage and tolerance for high income
Authors
FAZIO, Andrea (380 Italy) and Tommaso REGGIANI (380 Italy, guarantor, belonging to the institution)
Edition
European Economic Review, NETHERLANDS, Elsevier Science BV, 2023, 0014-2921
Other information
Language
English
Type of outcome
Článek v odborném periodiku
Field of Study
50202 Applied Economics, Econometrics
Country of publisher
Netherlands
Confidentiality degree
není předmětem státního či obchodního tajemství
References:
Impact factor
Impact factor: 2.800 in 2022
RIV identification code
RIV/00216224:14560/23:00134111
Organization unit
Faculty of Economics and Administration
UT WoS
001006801200001
Keywords in English
Inequality; Redistribution; Minimum wage; Loss aversion; Reference point; UK.
Tags
International impact, Reviewed
Změněno: 31/1/2024 19:54, Mgr. Pavlína Kurková
Abstract
V originále
We suggest that stabilizing the baseline income can make low-wage workers more tolerant towards high income earners. We present evidence of this attitude in the UK by exploiting the introduction of the National Minimum Wage (NMW), which institutionally sets a baseline pay reducing the risk of income losses and providing a clear reference point for British workers at the lower end of the income distribution. Based on data from the British Household Panel Survey (BHPS), we show that workers who benefited from the NMW program became relatively more tolerant of high incomes and more likely to support and vote for the Conservative Party. As far as tolerance for high incomes is related to tolerance of inequality, our results may suggest that people advocate for equality also because they fear income losses below a given reference point.
Links
| GA20-06785S, research and development project |
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