findings:overall insignificant decrease of income inequality; policy will have spatial dimension with rural households more affected; larger positive impact for remote rural households
channels:rural component depends on proximity to urban areas through having access to urban markets
A study looking at the distributional effects of introducing a minimum wage in Britain, with a specific spatial component.
Overall it finds little effect on income inequality in the country.
It finds that the effects on rural areas differ depending on their proximity to urban areas.
While overall income inequality only decreases a small amount, the intervention results in effective targeting with remote rural households having around twice the reduction in inequality compared to others.
Rural areas that are accessible to urban markets are less affected, with insignificant impacts to overall income inequality reduction.
One limit of the study is that it has to assume no effects on employment after the enaction of the minimum wage for its results to hold.
