Escaping the low pay trap: do labour market entrants stand a chance?
AbstractThis paper investigates the wage and employment perspectives of low-wage labour market entrants, using panel data from the UK, the Netherlands, and Germany. We apply a competing risks hazard model of transitions from low pay to higher pay, to unemployment or to inactivity. Low pay is found to be a rather transitory experience. However, a significant amount of transitions between low pay and non-employment is indicated. Exits from low-pay seem to be determined by firm-specific skills in the UK and the Netherlands, while by formal educational and vocational training qualifications in Germany.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 226.
Date of creation: Apr 2006
Date of revision:
low pay; competing risks; panel data;
Find related papers by JEL classification:
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
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.:
- Cappellari, Lorenzo & Jenkins, Stephen P., 2002.
"Modelling Low Income Transitions,"
IZA Discussion Papers
504, Institute for the Study of Labor (IZA).
- Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
- Francine D. Blau & Lawrence M. Kahn, 1996.
"International Differences in Male Wage Inequality: Institutions versus Market Forces,"
NBER Working Papers
4678, National Bureau of Economic Research, Inc.
- Blau, Francine D & Kahn, Lawrence M, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 791-836, August.
- Grip,Andries,de & Wolbers,Maarten H.J., 2003.
"Do Low-Skilled Youngsters get Better Jobs in Countries where Internal Labour Markets Dominate?,"
ROA Research Memorandum
008, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- Grip,Andries,de & Wolbers,Maarten H.J., 2003. "Do Low-Skilled Youngsters get Better Jobs in Countries where Internal Labour Markets Dominate?," ROA Research Memorandum 008, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- Maite Blázquez Cuesta & Wiemer Salverda, 2006. "WP 46 - Low pay incidence and mobility in the Netherlands – exploring the role of personnel, job and employer characteristics," AIAS Working Papers wp46, AIAS, Amsterdam Institute for Advanced Labour Studies.
- Adriana Fontes Rocha Expósito Da Silva & Valéria Lúcia Pero, 2011. "Low-Paid Employment In Brazil," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 140, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.