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Earnings Mobility and Low-Wage Employment in Spain: The Role of Job Mobility and Contractual Arrangements

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  • Maite Blázquez Cuesta

    () (Dpto de Análisis Económico: Teoría Económica e Historia Económica , Universidad Autónoma de Madrid)

Abstract

The aim of this paper can be summarized as follows. First, I analyze the dynamic nature of the relationship between earnings mobility, job mobility and changes in the contractual arrangements. Second I focus on the evolution of earnings mobility over time. And finally, I concentrate on lowwage employment and the opportunities of getting a better paid job for those workers at the bottom of the earnings distribution. For these purposes, I use the European Community Household Panel Survey (ECHP, 1995-2001), from which a sample of Spanish workers aged 16-65 years old has been drawn. Results show that overall job mobility contributes to increase earnings mobility. Movement into permanent employment status is associated with earnings upgrading overall. For males changes into temporary employment tend to be more strongly related with downgrading only when individuals remain with their current employer. The same is observed for females. However, for females, switching into temporary employment and changing employer at the same time tend to lead to either earnings upgrading or downgrading. Overall, earnings mobility remains mostly unchanged over time, although clear differences, both in terms of levels and trends, can be perceived among different types of workers. Finally I find evidence that switching into permanent employment, either with the current employer or with a change of employer, significantly increases the likelihood of getting a better paid job for those workers located at the bottom of the earnings distribution.

Suggested Citation

  • Maite Blázquez Cuesta, 2006. "Earnings Mobility and Low-Wage Employment in Spain: The Role of Job Mobility and Contractual Arrangements," LoWER Working Papers wp11, AIAS, Amsterdam Institute for Advanced Labour Studies.
  • Handle: RePEc:aia:lower3:wp11
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    References listed on IDEAS

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    1. Canto, Olga, 2000. "Income Mobility in Spain: How Much Is There?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 85-102, March.
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    5. 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.
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    7. Garcia Perez, Jose Ignacio & Rebollo Sanz, Yolanda, 2005. "Wage changes through job mobility in Europe: A multinomial endogenous switching approach," Labour Economics, Elsevier, vol. 12(4), pages 531-555, August.
    8. Jacob Mincer, 1986. "Wage Changes in Job Changes," NBER Working Papers 1907, National Bureau of Economic Research, Inc.
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    Cited by:

    1. 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).
    2. Muñoz de Bustillo, Rafael & Antón, José-Ignacio, 2007. "Low wage work in high employment growth economy, Spain 1994-2004," MPRA Paper 13847, University Library of Munich, Germany.

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