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Is It Easier To Escape From Low Pay In Urban Areas? Evidence From The Uk

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  • Phimister, Euan
  • Theodossiou, Ioannis
  • Upward, Richard

Abstract

In this paper we compare periods of low pay employment between rural and urban areas in the UK. Using the British Household Panel Survey, we estimate the probability that a period of low pay employment will end allowing for a number of possible outcomes, namely to a "high pay" job, self-employment, unemployment and out of 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 high pay and out of the labour force. After controlling for different personal and job characteristics across markets, rural low pay durations are slightly longer on average, with a lower probability that rural workers will move to high pay. However, the results suggest that the most significant urban-rural differences in the typical low pay experience are concentrated among certain types of individuals, e.g. young workers, women without qualifications.

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Bibliographic Info

Paper provided by University of Aberdeen Business School, Centre for European Labour Market Research (CELMR) in its series Discussion Papers with number 31790.

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Date of creation: 2004
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Handle: RePEc:ags:uabrdp:31790

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Keywords: Labor and Human Capital;

References

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  1. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May.
  2. Sloane, P J & Theodossiou, I, 1996. "Earnings Mobility, Family Income and Low Pay," Economic Journal, Royal Economic Society, vol. 106(436), pages 657-66, May.
  3. Oi, Walter Y. & Idson, Todd L., 1999. "Firm size and wages," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 33, pages 2165-2214 Elsevier.
  4. Derek Neal, 1998. "The Link between Ability and Specialization: An Explanation for Observed Correlations between Wages and Mobility Rates," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 173-200.
  5. Boheim, Rene & Taylor, Mark P, 2002. "Tied Down or Rome to Move? Investigating the Relationships between Housing Tenure, Employment Status and Residential Mobility in Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(4), pages 369-92, September.
  6. Jill L. Findeis & Leif Jensen, 1998. "Employment Opportunities in Rural Areas: Implications for Poverty in a Changing Policy Environment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1000-1007.
  7. David Freshwater, 1997. "Farm Production Policy Versus Rural Life Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1515-1524.
  8. Edward L. Glaeser, 1997. "Learning in Cities," Harvard Institute of Economic Research Working Papers 1814, Harvard - Institute of Economic Research.
  9. Thomas, Jonathan M, 1996. "An Empirical Model of Sectoral Movements by Unemployed Workers," Journal of Labor Economics, University of Chicago Press, vol. 14(1), pages 126-53, January.
  10. Euan Phimister & Mark Shucksmith & Esperanza Vera-Toscano, 2000. "The Dynamics of Low Pay in Rural Households: Exploratory Analysis Using the British Household Panel Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(1), pages 61-76.
  11. Metcalf, David, 1999. "The Low Pay Commission and the National Minimum Wage," Economic Journal, Royal Economic Society, vol. 109(453), pages F46-66, February.
  12. Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-38, February.
  13. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier.
  14. Bradford F. Mills, 2000. "Are Spells of Unemployment Longer in Nonmetropolitan Areas? Nonparametric and Semiparametric Evidence," Journal of Regional Science, Wiley Blackwell, vol. 40(4), pages 697-718.
  15. Shirley L. Porterfield, 1998. "On the Precipice of Reform: Welfare Spell Durations for Rural, Female-Headed Families," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 994-999.
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