Escaping the low pay trap: do labour market entrants stand a chance?

Dimitris Pavlopoulos () and Didier Fouarge

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the wage and employment perspectives of low-wage labour market entrants, using panel data from the UK, the Netherlands, and Germany. We apply a competing risks hazard model of transitions from low pay to higher pay, to unemployment or to inactivity. Low pay is found to be a rather transitory experience. However, a significant amount of transitions between low pay and non-employment is indicated. Exits from low-pay seem to be determined by firm-specific skills in the UK and the Netherlands, while by formal educational and vocational training qualifications in Germany.

Keywords: low pay; competing risks; panel data (search for similar items in EconPapers)
JEL-codes: C41 J3 J31 (search for similar items in EconPapers)
Date: 2006-04
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:226

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