Low paid employment in Britain: estimating state-dependence and stepping stone effects

Publication type

Research Paper

Series Number

9633

Series

IZA Discussion Papers

Authors

Publication date

January 15, 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

Link

https://ideas.repec.org/p/iza/izadps/dp9633.html

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• Low paid employment in Britain: estimating state-dependence and stepping stone effects

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  2. Kostas Mavromaras
  3. Peter Sloane

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