Low Pay Persistence in European Countries

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Low Pay Persistence in European Countries

Author Info

Clark, Ken () (University of Manchester)
Kanellopoulos, Nikolaos C. () (affiliation not available)

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Abstract

Using panel data for twelve European countries over the period 1994-2001 we estimate the extent of state dependence in low pay. Controlling for observable and unobservable heterogeneity as well as the endogeneity of initial conditions we find positive, statistically significant state dependence in every single country. The magnitude of this effect varies by country, however this variation is not systematically related to labour market institutions.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4183.

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Date of creation: May 2009
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Handle: RePEc:iza:izadps:dp4183

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Paper
- Ken Clark & Nikolaos C. Kanellopoulos, 2009. "Low Pay Persistence in European Countries," SOEPpapers 207, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J69 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Other

This paper has been announced in the following NEP Reports:

NEP-ALL-2009-06-03 (All new papers)
NEP-EEC-2009-06-03 (European Economics)
NEP-LAB-2009-06-03 (Labour Economics)

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References listed on IDEAS
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Other versions:
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Other versions:
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Other versions:
- Wiji Arulampalam & Mark B. Stewart, 2007. "Simplified Implementation of the Heckman Estimator of the Dynamic Probit Model and a Comparison with Alternative Estimators," IZA Discussion Papers 3039, Institute for the Study of Labor (IZA). [Downloadable!]
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Other versions:
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Other versions:
- Wiji Arulampalam & Alison Booth & Mark P. Taylor, 1998. "Unemployment Persistence," ILR working papers 019, Institute for Labour Research. [Downloadable!]

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