Low Pay Persistence in European Countries

Ken Clark and Nikolaos Kanellopoulos ()

No 207, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: Using panel data for twelve European countries over the period 1994-2001 we estimate the extent of state dependence in low pay. 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)
Pages: 32 p.
Date: 2009
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Low Pay Persistence in European Countries (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp207

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