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Low-wage mobility in the Portuguese labour market

Author

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  • José Cabral Vieira

Abstract

Low-wage employment has become a matter of concern in many countries, Portugal being among them. In particular, the extent to which low-wage employment is a permanent or transitory situation is an important issue. This paper examines low-wage mobility in the Portuguese labour market using the bivariate probit model proposed by van de Ven and van Praag (1981), in order to account for the potential endogeneity of the initial state. For this purpose, we use a matched employer-employee panel data for 1996 and 2000. Raw figures show that a significant number of workers are trapped into low-wage employment. We also find that males and the better-educated are more likely to escape from such a situation. Furthermore, initial firm characteristics, such as firm size, age and industry influence mobility. In particular, low-wage workers in larger or in newer firms have better mobility prospects. Copyright Springer-Verlag Berlin/Heidelberg 2005

Suggested Citation

  • José Cabral Vieira, 2005. "Low-wage mobility in the Portuguese labour market," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 4(1), pages 1-14, April.
    • Handle: RePEc:spr:portec:v:4:y:2005:i:1:p:1-14
    DOI: 10.1007/s10258-005-0038-2
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    Citations

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    Cited by:

    1. Barros, Carlos Pestana & Proença, Isabel & Vieira, José António Cabral, 2005. "Low-Wage Employment in Portugal: A Mixed Logit Approach," IZA Discussion Papers 1667, Institute of Labor Economics (IZA).
    2. Antonio Cutanda & Juan A. Sanchis-Llopis, 2023. "Human capital and the intertemporal substitution for leisure: empirical evidence for Spain," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 22(3), pages 377-396, September.
    3. Francisco Silva & José Vieira & António Pimenta & João Teixeira, 2018. "Duration of low-wage employment: a study based on a survival model," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(2), pages 286-299, February.
    4. Antonio Cutanda & Juan A. Sanchis-Llopis, 2022. "Human capital and the intertemporal substitution for leisure: empirical evidence for Spain," Working Papers 2116, Department of Applied Economics II, Universidad de Valencia.
    5. Lubica Stiblarova, 2022. "European Cohesion Policy to the Rescue? Revising (Counter)-Cyclical Effects in the EU-28 Recipient Countries," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(9-10), pages 681-702, August.
    6. A. G. Menezes & D. Sciulli & J. C. Vieira, 2011. "Wage persistence and labour market institutions: an analysis of young European workers," Applied Economics Letters, Taylor & Francis Journals, vol. 18(9), pages 823-828.
    7. Nuno Crespo & Nadia Simoes & Sandrina B. Moreira, 2014. "Gender differences in occupational mobility - evidence from Portugal," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(4), pages 460-481, July.
    8. Kamila Fialová, 2022. "Low-Wage Employment in Czechia: A Persistent Burden," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(6), pages 475-498, June.

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