This paper investigates transitions into and out of low pay in Britain in the 1990s. It finds considerable persistence in low pay. In addition, the low paid are more likely to move into non-employment; those entering employment from a spell outside are more likely to be low paid; and those who had been low paid prior to the spell of non-employment are even more likely than other entrants to be low paid again when they subsequently move back into employment.
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Stewart, Mark B & Swaffield, Joanna K, 1999.
"Low Pay Dynamics and Transition Probabilities,"
Economica,
London School of Economics and Political Science, vol. 66(261), pages 23-42, February.
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Find related papers by JEL classification: J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution 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
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