IDEAS home Printed from https://ideas.repec.org/a/rel/journl/y2006v3n1p58-86.html
   My bibliography  Save this article

The Probability of Leaving a Low-Paid Job in Spain: The Importance of Switching into Permanent Employment

Author

Listed:
  • Maite Blazquez

    (Universidad Autónoma de Madrid)

Abstract

This paper is aimed at analyzing the opportunities of getting a better paid job for those workers at the bottom of the earnings distribution. For this purpose I use the European Community Household Panel Survey (ECHP, 1995-2001), from which a sample of Spanish workers aged 16-64 years old has been drawn. The econometric technique consists of a Heckman selection probit model that allows me to account for the endogeneity of initial conditions. Results show that switching into permanent contract, either when remaining with the current employer or when changing employer significantly increases the likelihood of leaving a low pay situation.

Suggested Citation

  • Maite Blazquez, 2006. "The Probability of Leaving a Low-Paid Job in Spain: The Importance of Switching into Permanent Employment," Revista de Economía Laboral - Spanish Journal of Labour Economics, Asociación Española de Economía Laboral - AEET, vol. 3, pages 58-86.
  • Handle: RePEc:rel:journl:y:2006:v:3:n:1:p:58-86
    Note: Vol. 3, Núm. 1 (2006)
    as

    Download full text from publisher

    File URL: http://aeet-rel.es/index.php/rel/article/download/51/41/51-109-1-SM.pdf
    Download Restriction: no

    File URL: http://www.aeet.eu/images/RePEc/rel/journl/rel/51-109-1-SM.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    2. Juan Dolado & Francis Kramarz & Steven Machin & Alan Manning & David Margolis & Coen Teulings, 1996. "The Economic Impact of Minimum Wages in Europe," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00353896, HAL.
    3. Davia, Maria A., 2005. "Job mobility and wage mobility at the beginning of the working career: a comparative view across Europe," ISER Working Paper Series 2005-03, Institute for Social and Economic Research.
    4. Lorenzo Cappellari, 2007. "Earnings mobility among Italian low-paid workers," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(2), pages 465-482, April.
    5. Robert H. Topel & Michael P. Ward, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 439-479.
    6. María A.Davia & Virginia Hernanz, 2004. "Temporary employment and segmentation in the Spanish labour market: An empirical analysis through the study of wage differentials," Spanish Economic Review, Springer;Spanish Economic Association, vol. 6(4), pages 291-318, December.
    7. Machin, Stephen & Manning, Alan, 1996. "Employment and the Introduction of a Minimum Wage in Britain," Economic Journal, Royal Economic Society, vol. 106(436), pages 667-676, May.
    8. Juan F. Jimeno & Luis Toharia, 1993. "The effects of fixed-term employment on wages: theory and evidence from Spain," Investigaciones Economicas, Fundación SEPI, vol. 17(3), pages 475-494, September.
    9. 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.
    10. Sloane, P. J. & Theodossiou, I., "undated". "An Econometric Analysis of Low Pay Earnings Mobility," Working Papers 98-05, Department of Economics, University of Aberdeen.
    11. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    12. Wiemer Salverda & Claudio Lucifora & Brian Nolan (ed.), 2000. "Policy Measures for Low-Wage Employment in Europe," Books, Edward Elgar Publishing, number 2133.
    13. Keith, Kristen & McWilliams, Abagail, 1997. "Job Mobility and Gender-Based Wage Growth Differentials," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 320-333, April.
    14. Loprest, Pamela J, 1992. "Gender Differences in Wage Growth and Job Mobility," American Economic Review, American Economic Association, vol. 82(2), pages 526-532, May.
    15. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-1024, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Low-wage employment; job mobility; type of contract; Heckman probit;

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rel:journl:y:2006:v:3:n:1:p:58-86. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Emilio Congregado y D. Raúl Ramos.) or (). General contact details of provider: http://edirc.repec.org/data/aeettea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.