WP 46 - Low pay incidence and mobility in the Netherlands – exploring the role of personnel, job and employer characteristics
AbstractThe rise of earnings inequality in many industrialized countries in recent years has increased concerns about the pay conditions of those individuals located at the bottom of the wage distribution. In this paper we first analyze which groups in the Dutch labor market are more likely on average to fall in low-wage segments, and which are the characteristics of workers and firms that are more closely related to low wage rates. We also explore how the pattern of low-wage employment has evolved over time. Second, we examine the determinants of being in low-wage employment for the individual worker, and we analyze whether there exists a type of “poverty trap” as a result of which earnings mobility is lacking and some workers persist in low-paid jobs for a long period of time. To achieve this we use two datasets: the European Community Household Panel (ECHP) for the period 1995-2001, and the Arbeidsvoorwaarden Onderzoek (Labor Conditions Survey, AVO) of the Dutch Labor Inspectorate for 2002. We utilize the longitudinal aspect of the ECHP to analyze the evolution of low-wage employment over time, by looking at different individual and job characteristics. Finally, we complete the analysis on low-wage employment with an examination of the role of the firm using the detailed information provided by the AVO.
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Bibliographic InfoPaper provided by AIAS, Amsterdam Institute for Advanced Labour Studies in its series AIAS Working Papers with number wp46.
Date of creation: Jan 2006
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