Unemployment and Low Pay Dynamics in the Neighbourhood Context


There is considerable debate on whether the employment and earnings prospects are better for those on low pay or for the unemployed. Low-pay work tends to be undertaken more locally but no empirical analysis has focused on how opportunities in the immediate neighbourhood alter people’s employment and earnings prospects. In this project we use data for England from the first five waves of Understanding Society, the UK Household Longitudinal Study (UKHLS), matched with labour market indicators of the very immediate neighbourhoods in which the study respondents live. We examine heterogeneity in local labour markets for people in different employment situations and observe their status changes over time using dynamic random effects estimation.

Team members

Dr Gundi Knies, Research Fellow, ISER University of Essex
Mr Alexander Plum, Analyst at German Federal Ministry of Finance (BMF) and PhD candidate in Economics, Otto von Guericke University of Magdeburg


Working paper: Does neighbourhood unemployment affect the springboard effect of low pay?