Low pay persistence in Europe

Ken Clark; Nikolaos C. Kanellopoulos

doi:10.1016/j.labeco.2013.04.014

Low pay persistence in Europe

Ken Clark, Nikolaos C. Kanellopoulos

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

Using panel data for twelve European countries over the period 1994-2001 we estimate the extent of state dependence in low pay for male workers. Controlling for observable and unobservable heterogeneity as well as the endogeneity of initial conditions we find positive, statistically significant state dependence in every single country. The magnitude of this effect varies by country, however this variation is not systematically related to labour market institutions. © 2013 Elsevier B.V.

Original language	English
Pages (from-to)	122-134
Number of pages	12
Journal	Labour Economics
Volume	23
DOIs	https://doi.org/10.1016/j.labeco.2013.04.014
Publication status	Published - Aug 2013

Keywords

Dynamic random effects probit models
Initial conditions
Low pay
Low pay persistence
State dependence

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.labeco.2013.04.014

Cite this

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title = "Low pay persistence in Europe",

abstract = "Using panel data for twelve European countries over the period 1994-2001 we estimate the extent of state dependence in low pay for male workers. Controlling for observable and unobservable heterogeneity as well as the endogeneity of initial conditions we find positive, statistically significant state dependence in every single country. The magnitude of this effect varies by country, however this variation is not systematically related to labour market institutions. {\textcopyright} 2013 Elsevier B.V.",

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AB - Using panel data for twelve European countries over the period 1994-2001 we estimate the extent of state dependence in low pay for male workers. Controlling for observable and unobservable heterogeneity as well as the endogeneity of initial conditions we find positive, statistically significant state dependence in every single country. The magnitude of this effect varies by country, however this variation is not systematically related to labour market institutions. © 2013 Elsevier B.V.

KW - Dynamic random effects probit models

KW - Initial conditions

KW - Low pay

KW - Low pay persistence

KW - State dependence

U2 - 10.1016/j.labeco.2013.04.014

DO - 10.1016/j.labeco.2013.04.014

M3 - Article

SN - 0927-5371

VL - 23

SP - 122

EP - 134

JO - Labour Economics

JF - Labour Economics

ER -

Low pay persistence in Europe

Abstract

Keywords

UN SDGs

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