Low Paid Employment in Britain: Estimating State†Dependence and Stepping Stone Effects

Lixin Cai, Kostas Mavromaras and Peter Sloane

Oxford Bulletin of Economics and Statistics, 2018, vol. 80, issue 2, 283-326

Abstract: Using 18 waves of the British Household Panel Study, this paper examines state†dependence and stepping stone effects of low pay. 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.

Date: 2018
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