Low-Wage Mobility in the Italian Labour Market
AbstractThis paper uses SHIW panel data for 1993 and 1995 to model individual transition probabilities at the bottom of the Italian wage distribution. The analysis is based on a bivariate probit model with endogenous switching which allows tackling the initial conditions problem, i.e. the potential endogeneity of the conditioning starting state. Results show the appropriateness of such a choice : the correlation between state and transition probabilities is significantly different from zero, while overlooking endogeneity leads to overstatement of both size and significance of coefficients in the transition equation. The paper shows that while some factors such as education, sex and geographical location have an effect on low-pay persistence, job related variables are more effective in avoiding falls into low-pay from higher pay. It is also shown how raw persistence involves a considerable share of true state dependence, pointing towards the existence of low-pay stigma.
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 of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 531.
Length: 32 pages
Date of creation: 1999
Date of revision:
low-pay ; wage mobility ; initial conditions problem;
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
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Schank, Thorsten & Schnabel, Claus & Stephani, Jens, 2008.
"Geringverdiener: wem und wie gelingt der Aufstieg?,"
57, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
- Thorsten Schank & Claus Schnabel & Jens Stephani, 2009. "Geringverdiener: Wem und wie gelingt der Aufstieg?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 229(5), pages 584-614, October.
- Schank, Thorsten & Schnabel, Claus & Stephani, Jens, 2008. "Geringverdiener: Wem und wie gelingt der Aufstieg?," IAB Discussion Paper 200814, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Paulo Madruga & José Vieira, 2004. "Regions and Low-Wage Mobility in Portugal," ERSA conference papers ersa04p55, European Regional Science Association.
- Fabrizio Patriarca, 2004. "I differenziali di mobilità salariale in Italia dal 1986 al 1996," Working Papers - Dipartimento di Economia 3-DEISFOL, Dipartimento di Economia, Sapienza University of Rome, revised 2004.
- Cappellari, Lorenzo, 2004.
"Earnings Mobility Among Italian Low Paid Workers,"
IZA Discussion Papers
1068, Institute for the Study of Labor (IZA).
- Dimitris Pavlopoulos & Ruud Muffels & Jeroen Vermunt, 2010.
"Wage mobility in Europe. A comparative analysis using restricted multinomial logit regression,"
Quality & Quantity: International Journal of Methodology,
Springer, vol. 44(1), pages 115-129, January.
- Pavlopoulos, Dimitris & Muffels, Ruud & Vermunt, Jeroen-K., 2005. "Wage Mobility in Europe. A Comparative Analysis Using restricted Multinomial Logit Regression," MPRA Paper 229, University Library of Munich, Germany.
- Barros, Carlos Pestana & Proença, Isabel & Vieira, José A. Cabral, 2005.
"Low-Wage Employment in Portugal: A Mixed Logit Approach,"
IZA Discussion Papers
1667, Institute for the Study of Labor (IZA).
- Carlos Barros & Isabel Proenca & Jose Cabral Vieira, 2005. "Low-wage employment in Portugal: a mixed logit approach," Labor and Demography 0508001, EconWPA.
- Clark, Ken & Kanellopoulos, Nick, 2009.
"Low Pay Persistence in European Countries,"
IZA Discussion Papers
4183, Institute for the Study of Labor (IZA).
- Ken Clark & Nikolaos C. Kanellopoulos, 2009. "Low Pay Persistence in European Countries," SOEPpapers on Multidisciplinary Panel Data Research 207, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Grün, Carola & Mahringer, Helmut & Rhein, Thomas, 2011. "Low-wage jobs: a means for employment integration of the unemployed? : evidence from administrative data in Germany and Austria," IAB Discussion Paper 201101, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Diaz-Serrano, Luis & Vieira, José A. Cabral, 2005.
"Low Pay, Higher Pay and Job Satisfaction within the European Union: Empirical Evidence from Fourteen Countries,"
IZA Discussion Papers
1558, Institute for the Study of Labor (IZA).
- Luis Diaz-Serrano & Jose A. Cabral Vieira, 2005. "Low-pay higher pay and job satisfaction within the European Union: empirical evidence from fourteen countries," Economics, Finance and Accounting Department Working Paper Series n1560405, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
- Augustin de Coulon & Boris A. Z�rcher, 2001. "Low-Pay Mobility in the Swiss Labor Market," Working Papers 447, Queen Mary, University of London, School of Economics and Finance.
- Pavlopoulos, Dimitris & Fouarge, Didier, 2008.
"Escaping low pay: do male labour market entrants stand a chance?,"
IRISS Working Paper Series
2008-12, IRISS at CEPS/INSTEAD.
- Dimitris Pavlopoulos & Didier Fouarge, 2010. "Escaping low pay: do male labour market entrants stand a chance?," International Journal of Manpower, Emerald Group Publishing, vol. 31(8), pages 908-927, November.
- Pimenta, António M. S. & Silva, Francisco J. F. & Vieira, José A. Cabral, 2011. "Duration of Low Wage Employment: A Study Based on a Survival Model," IZA Discussion Papers 5972, Institute for the Study of Labor (IZA).
- Jose Cabral Vieira & Antonio Menezes & Patricia Gabriel, 2005. "Low pay, higher pay and job quality: empirical evidence for Portugal," Applied Economics Letters, Taylor and Francis Journals, vol. 12(8), pages 505-511.
- Vieira, J.A.C. & Madruga, P., 2004. "Regions and Low-Wage Mobility in Portugal, 1996-2000," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 4(2).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helen Neal).
If references are entirely missing, you can add them using this form.