Low pay persistence in Europe

Ken Clark and Nikolaos Kanellopoulos ()

Labour Economics, 2013, vol. 23, issue C, 122-134

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.

Keywords: Low pay; Low pay persistence; State dependence; Initial conditions; Dynamic random effects probit models (search for similar items in EconPapers)
JEL-codes: C23 C25 J31 J69 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (34)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:23:y:2013:i:c:p:122-134

DOI: 10.1016/j.labeco.2013.04.014

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