- A1.2 Aggregate firm dynamics We are also interested in whether the NLW introduction had an impact on firm entry. We therefore consider all firms ever active in the period between March 2016 and March 2017, allowing for both entries into and exits out of the sample. Estimating reduced-form linear probability models for the probability of entry as we did above for the probability of exit is infeasible, since we do not have a measure of the minimum wage bite for entrants. We therefore collapse the data at the local authority district level38 and run reduced-form regressions of the following form: Q3, = > + > !3, " + R3, " $
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- Figure A2 12% at 6.70 60% ≤ 7.20 0 10 20 30 5 6 7 8 9 10 March 2016 23% at 7.20 49% ≤ 7.20 0 10 20 30 5 6 7 8 9 10 June 2016 26% at 7.20 43% ≤ 7.20 0 10 20 30 5 6 7 8 9 10 September 2016 24% at 7.20 36% ≤ 7.20 0 10 20 30 5 6 7 8 9 10 March 2017 Percent Hourly wage Hourly wage distribution for domiciliary carers under 56 Figure A3 Notes: Panel A is based on the sample of 2480 homes with CQC ratings as of March 2016. Panel B is based on the subgroup of firms that were inspected and rated by CQC both before and after March 2016. Legend: 1 = inadequate, 2 = requires improvement, 3 = good, 4 = outstanding.
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- For completeness, we also report reduced-form and structural-form estimates for firm exits at the local authority level in Table A17 in Appendix A2. Consistently with the firm-level results, we do not find evidence of a detrimental effect of the NLW introduction on care home survival. 39 Estimates for entries between March and June 2016 are reported in Panel A of Table A16 in Appendix A2, while those for entries between March and September 2016 in Panel B of the same table. 55 Appendix A2 – Additional Figures and Tables Figure A1 Notes: From Low Pay Commission.
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- While the previous chart displays the change in mass by wage bin for selected post-treatment periods relative to March 2016, Figure A6 in Appendix A2 documents the evolution of the total number of jobs below the minimum 8 = ∑ %8 7 " 7<"> (missing mass), the total number of jobs above the minimum 8 = ∑ %8 7 = 7<5 (excess mass), and their sum Δ8 = 8 + 8 (net excess mass) for C = {−6, −5, … , −2, 0, … , 11,12}. The numbers reported at the bottom of the figure are the point estimates Δ
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