The Anatomy of Low Pay Among Older Workers

Lorenzo Cappellari and Andrea Matteo Giunta

MPRA Paper from University Library of Munich, Germany

Abstract: This study uses administrative data on wages and employment to investigate the interaction between two pressing socio-economic challenges: population aging and the working poor. We examine the evolution of low pay across age and cohort. Results for low pay incidence show a U-shaped curve, indicating that close-to-retirement workers are among the most vulnerable in the labor force. Moreover, we find that while the probability of entering low pay is higher for young and older employees, older cohorts exhibit substantial low-pay state dependency, suggesting the presence of a poverty trap.

Keywords: Older workers; working poor; low wage; labour market; Italy (search for similar items in EconPapers)
JEL-codes: J31 (search for similar items in EconPapers)
Date: 2025-11
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:127628

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