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Low pay, higher pay and job quality: empirical evidence for Portugal

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  • Jose Cabral Vieira
  • Antonio Menezes
  • Patricia Gabriel

Abstract

This paper examines to what extent low pay jobs can be considered of low quality. For this purpose, we use three waves (1997-1999) of the European Community Household Panel (ECHP) for Portugal. The results indicate that low pay workers report a lower level of job satisfaction when compared with their higher paid counterparts. Moreover, some of the determinants of job satisfaction differ between these two types of workers. This supports the idea that low wage employment mainly comprises low quality jobs and is consistent with the segmented labour market theory, which claims the existence of good and bad jobs. This is, however, at odds with some empirical evidence recently reported for the British labour market where low pay individuals report a higher level of satisfaction, which is more in line with the notion that these workers obtain compensating differences in the form of non-pecuniary benefits.

Suggested Citation

  • Jose Cabral Vieira & Antonio Menezes & Patricia Gabriel, 2005. "Low pay, higher pay and job quality: empirical evidence for Portugal," Applied Economics Letters, Taylor & Francis Journals, vol. 12(8), pages 505-511.
  • Handle: RePEc:taf:apeclt:v:12:y:2005:i:8:p:505-511
    DOI: 10.1080/13504850500109907
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    References listed on IDEAS

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    1. Miller, Paul W, 1990. "Trade Unions and Job Satisfaction," Australian Economic Papers, Wiley Blackwell, vol. 29(55), pages 226-248, December.
    2. 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.
    3. Rannia Leontaridi & Peter Sloane, 2001. "Measuring The Quality Of Jobs," LoWER Working Papers wp7, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. P. J. Sloane & H. Williams, 2000. "Job Satisfaction, Comparison Earnings, and Gender," LABOUR, CEIS, vol. 14(3), pages 473-502, September.
    5. Sousa-Poza, Alfonso & Sousa-Poza, Andres A, 2000. "Taking Another Look at the Gender/Job-Satisfaction Paradox," Kyklos, Wiley Blackwell, vol. 53(2), pages 135-152.
    6. Richard Jones & Peter Sloane, 2007. "Low Pay, Higher Pay and Job Satisfaction in Wales," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(2), pages 197-214.
    7. Lorenzo Cappellari, 1999. "Low-Wage Mobility in the Italian Labour Market," The Warwick Economics Research Paper Series (TWERPS) 531, University of Warwick, Department of Economics.
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    Citations

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    Cited by:

    1. Mark Wooden & Diana Warren & Robert Drago, 2009. "Working Time Mismatch and Subjective Well-being," British Journal of Industrial Relations, London School of Economics, vol. 47(1), pages 147-179, March.
    2. Carola Grün & Wolfgang Hauser & Thomas Rhein, 2010. "Is Any Job Better than No Job? Life Satisfaction and Re-employment," Journal of Labor Research, Springer, vol. 31(3), pages 285-306, September.
    3. Maria da Conceição Cerdeira & Ilona Kovács, 2008. "Job quality in Europe: the North-South divide," Enterprise and Work Innovation Studies, Universidade Nova de Lisboa, IET/CICS.NOVA-Interdisciplinary Centre on Social Sciences, Faculty of Science and Technology, vol. 4(4), pages 21-47, November.
    4. M. Salgueiro & Peter Smith & Marcel Vieira, 2013. "A multi-process second-order latent growth curve model for subjective well-being," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(2), pages 735-752, February.
    5. Benjamin Artz, 2008. "Fringe Benefits and Job Satisfaction," Working Papers 08-03, UW-Whitewater, Department of Economics.
    6. Benjamin Artz, 2010. "Fringe benefits and job satisfaction," International Journal of Manpower, Emerald Group Publishing, vol. 31(6), pages 626-644, September.

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