Earnings Mobility Among Italian Low Paid Workers

Arbeitspapier

This paper uses Italian panel data to analyse transition probabilities at the bottom of the earnings distribution during the 1990s. The analytical framework is characterised by the ability to account for the endogeneity of initial conditions, educational attainment and earnings attrition, providing a model that encompasses those applied by previous research. Results show that the three selection mechanisms are endogenous for the estimation of low pay transitions. The data also reveal considerable state dependence, i.e. the experience of low pay is found to raise, per se, the probability of subsequent low pay episodes. Low pay persistence and entry rates are found to be larger among female employees, the low educated, manual workers in small firms and workers from the South relative to otherwise comparable individuals.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 1068

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Personal Income, Wealth, and Their Distributions ; Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions ; Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
• Subject: low pay ; earnings mobility ; initial conditions ; earnings attrition ; education ; Niedriglohn ; Soziale Mobilität ; Schätzung ; Italien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cappellari, Lorenzo
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/20303