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Low Pay Dynamics and Transition Probabilities

Author

Listed:
  • Stewart, M.B.
  • Swaffield, J.K.

Abstract

This paper investigates transitions into and out of low pay in Britain in the 1990s. It finds considerable persistence in low pay. In addition, the low paid are more likely to move into non-employment; those entering employment from a spell outside are more likely to be low paid; and those who had been low paid prior to the spell of non-employment are even more likely than other entrants to be low paid again when they subsequently move back into employment.

Suggested Citation

  • Stewart, M.B. & Swaffield, J.K., 1997. "Low Pay Dynamics and Transition Probabilities," The Warwick Economics Research Paper Series (TWERPS) 495, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:495
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/1995-1998/twerp495.pdf
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    Keywords

    WAGES ; LABOUR MOBILITY;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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