Low Paid Employment in Britain: Estimating State-Dependence and Stepping Stone Effects

Arbeitspapier

Using 18 waves of the British Household Panel Study, this paper examines state dependence and stepping stone effects of low pay. A distinguishing feature is that five types of transition- not in the labour force (NILF), unemployment, self-employment, low pay and higher pay are modelled separately. The results show that both state dependence and stepping stone effects of low pay are present. However, there is no evidence to support a low-pay no-pay cycle. The introduction of the national minimum wage does not appear to have affected state-dependence and stepping stone effects of low pay.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 9633

Classification and Topics

• Classification: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Wage Level and Structure; Wage Differentials ; Analysis of Education
• Subject: low pay ; unemployment ; state dependence ; dynamic models

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cai, Lixin ; Mavromaras, Kostas G. ; Sloane, Peter J.
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/130305
• Last update: 10.03.2025, 11:45 AM CET