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The Dynamics of Low Pay Employment in Australia

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  • Cai, Lixin

Abstract

Using the Household, Income and Labour Dynamics in Australia (HILDA) survey, this study shows that workers who have entered low pay from higher pay also have a higher hazard rate of transitioning to higher pay; and those who have entered low pay from non-employment are more likely to return to non-employment. Union members, public sector jobs and working in medium to large size firms tend to increase the hazard rate of transitioning to higher pay, while immigrants from non-English speaking countries and workers with health problems have a lower hazard rate of moving into higher pay. There is some evidence that the longer a worker is on low pay, the less likely he or she is to transition to higher pay.

Suggested Citation

  • Cai, Lixin, 2015. "The Dynamics of Low Pay Employment in Australia," MPRA Paper 67261, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:67261
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    References listed on IDEAS

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    More about this item

    Keywords

    Earnings; low pay; data analysis; modelling;

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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