Research Paper IZA Discussion Papers 9633
Low paid employment in Britain: estimating state-dependence and stepping stone effects
Authors
Publication date
Jan 2016
Summary
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.
Published in
Oxford Bulletin of Economics and Statistics
Subjects
Labour Market, Welfare Benefits, and Wages And Earnings
Links
https://ideas.repec.org/p/iza/izadps/dp9633.html
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