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The British national living wage: An overly ambitious policy?
Great Britain has been running one of the most ambitious minimum wage policies in recent years—overly ambitious, I would argue. The so-called national living wage rose from over £7 in 2017 to £12.21 this year (+74%). In the last three years alone, it increased by about 28.5%, considerably faster than wage growth in the middle and top of the income distribution.
The end result has been pronounced wage compression with minimum wage workers in the U.K. now earning about two-thirds of the median wage.
While