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Escaping the low pay trap: do labour market entrants stand a chance?

Author

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  • Pavlopoulos, Dimitris
  • Fouarge, Didier

Abstract

This paper investigates the wage and employment perspectives of low-wage labour market entrants, using panel data from the UK, the Netherlands, and Germany. We apply a competing risks hazard model of transitions from low pay to higher pay, to unemployment or to inactivity. Low pay is found to be a rather transitory experience. However, a significant amount of transitions between low pay and non-employment is indicated. Exits from low-pay seem to be determined by firm-specific skills in the UK and the Netherlands, while by formal educational and vocational training qualifications in Germany.

Suggested Citation

  • Pavlopoulos, Dimitris & Fouarge, Didier, 2006. "Escaping the low pay trap: do labour market entrants stand a chance?," MPRA Paper 226, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:226
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    File URL: https://mpra.ub.uni-muenchen.de/226/1/MPRA_paper_226.pdf
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    References listed on IDEAS

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    Cited by:

    1. Adriana Fontes Rocha Expósito Da Silva & Valéria Lúcia Pero, 2011. "Low-Paid Employment In Brazil," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 140, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. repec:aia:aiaswp:wp46 is not listed on IDEAS

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    Keywords

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    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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