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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