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Low pay, higher pay and job quality: empirical evidence for Portugal

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Author Info
José Cabral Vieira
António Menezes
Patrícia Gabriel

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Abstract

This paper examines to what extent low pay jobs can be considered of low quality. For this purpose, we use three waves (1997--1999) of the European Community Household Panel (ECHP) for Portugal. The results indicate that low pay workers report a lower level of job satisfaction when compared with their higher paid counterparts. Moreover, some of the determinants of job satisfaction differ between these two types of workers. This supports the idea that low wage employment mainly comprises low quality jobs and is consistent with the segmented labour market theory, which claims the existence of good and bad jobs. This is, however, at odds with some empirical evidence recently reported for the British labour market where low pay individuals report a higher level of satisfaction, which is more in line with the notion that these workers obtain compensating differences in the form of non-pecuniary benefits.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 12 (2005)
Issue (Month): 8 (June)
Pages: 505-511
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Handle: RePEc:taf:apeclt:v:12:y:2005:i:8:p:505-511

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Miller, Paul W, 1990. "Trade Unions and Job Satisfaction," Australian Economic Papers, Blackwell Publishing, vol. 29(55), pages 226-48, December.
  2. Stewart, M.B. & Swaffield, J.K., 1997. "Low Pay Dynamics and Transition Probabilities," The Warwick Economics Research Paper Series (TWERPS) 495, University of Warwick, Department of Economics.
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  3. P. J. Sloane & H. Williams, 2000. "Job Satisfaction, Comparison Earnings, and Gender," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 14(3), pages 473-502, 09. [Downloadable!] (restricted)
  4. Sousa-Poza, Alfonso & Sousa-Poza, Andres A, 2000. "Taking Another Look at the Gender/Job-Satisfaction Paradox," Kyklos, Blackwell Publishing, vol. 53(2), pages 135-52.
  5. Lorenzo Cappellari, 1999. "Low-Wage Mobility in the Italian Labour Market," The Warwick Economics Research Paper Series (TWERPS) 531, University of Warwick, Department of Economics. [Downloadable!]
  6. Richard J. Jones & Peter J. Sloane, 2007. "Low Pay, Higher Pay and Job Satisfaction in Wales," Spatial Economic Analysis, Taylor and Francis Journals, vol. 2(2), pages 197-214. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Mark Wooden & Diana Warren & Robert Drago, 2007. "Working Time Mismatch and Subjective Well-Being," Melbourne Institute Working Paper Series wp2007n29, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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