A number of studies have also examined the effects of the abolition of the Wage Councils in 1993.
Hiring and firing rules were liberalised and Wage Councils, bar one, were abolished.
In the past, some sectors were covered by Wage Boards established in 1909 and transformed into Wage Councils after the second World War.
Before Wage Councils were abolished, 100 000 establishments, over a period of 12 years, were charged with underpaying, yet only 82 were successfully prosecuted and the penalties were small (Fernie and Metcalf, 1996).
The Labour leadership contender promised to bring back wage councils to stop greedy bosses exploiting staff.
At the heart of this will be the reintroduction of wage councils - a forum for bosses, unions, workers and the Government - to agree pay, terms and conditions.
Wage councils were set up in the 1930s but the majority were phased out by the Tories in the 1980s and 1990s.
Even Margaret Thatcher, who set about dismantling Britain's other wage councils
, accepted that rural workers needed unique protection.
He said research had shown that such a rate was less than what those workers would have been paid if the wage councils, which were abolished by the Conservatives, had been allowed to continue.
People did not shout about the wage councils being too high and the research that has been done about the abolition of the wage councils showed no increase in employment as a result of doing that," he said.
On reintroducing wage councils
- July 2016 "I think there's a real case for reinventing modern wage councils
, operating sector by sector, looking at the specific terms and conditions in individual sectors and arguing for better terms and wages for workers in those sectors.
Before the morning is out on day one of a new government, it should set up wage councils
to raise the pay of the men and women of our country.