Coping with Wage Regulation

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Abstract
This article investigates the effects of the introduction and uprating of the National Minimum Wage (NMW) on hairdressing businesses in the UK. The focus is on owner-manager responses to the NMW, in terms of business management, the utilization of human resources and whether the NMW constituted a ‘regulatory shock’. The data was collected from 48 in-depth interviews with hairdressing businesses in all regions of the UK during 2002. The research project was funded by the Low Pay Commission (LPC), and was designed to reflect the diversity of the hairdressing industry in terms of location, size of firm and type of services offered. The advent of the NMW did not act as a regulatory shock, and responses in terms of change to business management and utilization of staff can be best understood as reflections of existing philosophy and practice rather than a trigger for new directions.

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