AVERAGE EARNINGS,MINIMUM WAGES AND GRANGER-CAUSALITY IN AGRICULTURE IN ENGLAND AND WALES

Abstract The Agricultural Wages Board (AWB) for England and Wales sets minimum wages, hours and overtime rates. Post-war average earnings have always exceeded minimum wages. This paper examines the relationship between average earnings and minimum wages from 1948–1993 for regular whole-time males using cointegration analysis. The results imply the existence of such a relationship, and that earnings Granger-cause minimum wages. The AWB therefore has been reactive having had no impact on average earnings.