Low Pay Persistence in European Countries

Ken Clark and Nikolaos Kanellopoulos ()

No 4183, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: initial conditions; state dependence; low pay persistence; low pay; dynamic random effects probit models (search for similar items in EconPapers)
JEL-codes: C23 C25 J31 J69 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2009-05
New Economics Papers: this item is included in nep-eec and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - revised version published in Labour Economics 2013, 23, 122-134.

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Working Paper: Low Pay Persistence in European Countries (2009)
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