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Is it Easier to Escape from Low Pay in Urban Areas? Evidence from the United Kingdom

Author

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  • Euan Phimister

    (Department of Economics (and Arkleton Institute for Rural Development Research), University of Aberdeen Business School, Edward Wright Building, Old Aberdeen AB24 3QY, Scotland)

  • Ioannis Theodossiou

    (Centre for European Labour Market Research, Department of Economics, University of Aberdeen Business School, Edward Wright Building, Old Aberdeen AB24 3QY, Scotland, and Department of Economics, University of Macedonia, Egnatia 156, GR 54006, Thessaloniki, Greece)

  • Richard Upward

    (Nottingham School of Economics, University Park, Nottingham NG7 2RD, England)

Abstract

In this paper we compare periods of low-paid employment between urban and rural areas in the United Kingdom. Using the British household panel survey, we estimate the probability that a period of low-paid employment will end, followed by a number of possible outcomes, namely a higher-paid job, self-employment, unemployment, and leaving the labour force. The results show that there are statistically significant differences in the dynamics of low pay across urban and rural labour markets, particularly in terms of exits to higher pay and out of the labour force. After controlling for different personal and job characteristics across markets, urban low-pay durations are somewhat shorter on average, with a higher probability of movement to a higher-paid job. The results suggest that any urban–rural differences in the typical low-pay experience are concentrated among certain types of individuals, such as young workers and women without qualifications.

Suggested Citation

  • Euan Phimister & Ioannis Theodossiou & Richard Upward, 2006. "Is it Easier to Escape from Low Pay in Urban Areas? Evidence from the United Kingdom," Environment and Planning A, , vol. 38(4), pages 693-710, April.
    • Handle: RePEc:sae:envira:v:38:y:2006:i:4:p:693-710
    DOI: 10.1068/a37297
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    References listed on IDEAS

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    Cited by:

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    2. Dimitris Pavlopoulos & Didier Fouarge, 2010. "Escaping low pay: do male labour market entrants stand a chance?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(8), pages 908-927, November.
    3. Sanne Velthuis & Paul Sissons & Nigel Berkeley, 2019. "Do low-paid workers benefit from the urban escalator? Evidence from British cities," Urban Studies, Urban Studies Journal Limited, vol. 56(8), pages 1664-1680, June.
    4. Zoltan Elekes & Anna Baranowska-Rataj & Rikard Eriksson, 2021. "Local access to skill-related high-income jobs facilitates career advancement for low-wage workers," Papers in Evolutionary Economic Geography (PEEG) 2136, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    5. Stephani, Jens, 2013. "Does it matter where you work? : employer characteristics and the wage growth of low-wage workers and higher-wage workers," IAB-Discussion Paper 201304, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Neil Lee & Paul Sissons, 2016. "Inclusive growth? The relationship between economic growth and poverty in British cities," Environment and Planning A, , vol. 48(11), pages 2317-2339, November.

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