Abstract:
The issue of low-wage employment has received increased interest during recent decades in many European countries. In this paper I analyse the patterns of low-wage employment in Spain. Using a sample of Spanish workers extracted from the European Community Household Panel for the period 1995-2001, I first analyse the earnings distribution as a whole, and how low-wage employment has evolved over the period 1995-2001. Furthermore, I examine the determinants of low-wage employment using an analytical framework that is characterized by the ability to ac count for the endogeneity of initial conditions. Finally, I explore the effects of low pay on job mobility in Spain. For this purpose I adopt an approach based on competing risks in order to allow for different risks of failure. Copyright 2008 The Author. Journal compilation CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd. 2008.