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Low-wage mobility in the Portuguese labour market

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  • José Cabral Vieira

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Abstract

Low-wage employment has become a matter of concern in many countries, Portugal being among them. In particular, the extent to which low-wage employment is a permanent or transitory situation is an important issue. This paper examines low-wage mobility in the Portuguese labour market using the bivariate probit model proposed by van de Ven and van Praag (1981), in order to account for the potential endogeneity of the initial state. For this purpose, we use a matched employer-employee panel data for 1996 and 2000. Raw figures show that a significant number of workers are trapped into low-wage employment. We also find that males and the better-educated are more likely to escape from such a situation. Furthermore, initial firm characteristics, such as firm size, age and industry influence mobility. In particular, low-wage workers in larger or in newer firms have better mobility prospects. Copyright Springer-Verlag Berlin/Heidelberg 2005

Suggested Citation

  • José Cabral Vieira, 2005. "Low-wage mobility in the Portuguese labour market," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 4(1), pages 1-14, April.
  • Handle: RePEc:spr:portec:v:4:y:2005:i:1:p:1-14 DOI: 10.1007/s10258-005-0038-2
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    References listed on IDEAS

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    Cited by:

    1. Carlos Barros & Isabel Proenca & Jose Cabral Vieira, 2005. "Low-wage employment in Portugal: a mixed logit approach," Labor and Demography 0508001, EconWPA.
    2. A. G. Menezes & D. Sciulli & J. C. Vieira, 2011. "Wage persistence and labour market institutions: an analysis of young European workers," Applied Economics Letters, Taylor & Francis Journals, vol. 18(9), pages 823-828.
    3. Nuno Crespo & Nadia Simoes & Sandrina B. Moreira, 2014. "Gender differences in occupational mobility - evidence from Portugal," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(4), pages 460-481, July.
    4. Pimenta, António M. S. & Silva, Francisco J. F. & Vieira, José António 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).

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    Keywords

    Wage mobility; low-wage; firm age; Portugal;

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