The Dynamics of Low Pay Employment in Australia

Lixin Cai

MPRA Paper from University Library of Munich, Germany

Abstract: Using the Household, Income and Labour Dynamics in Australia (HILDA) survey, this study shows that the largest proportion of low pay spells originated from higher pay; only a small proportion were from non-employment or recent graduates. While the majority of low pay spells transitioned to higher pay, a significant proportion ended up with non-employment. The multivariate analysis shows that workers who entered low pay from higher pay also have a higher hazard rate of transitioning to higher pay; and those who entered low pay from non-employment are more likely to return to non-employment. Union members, public sector jobs and working in medium to large size firms increase the hazard rate of transitioning to higher pay, while immigrants from non-English speaking countries and workers with health problems have a lower hazard rate of moving into higher pay. There is some evidence that the longer a worker is in low paid employment, the less likely they are to transition to higher pay.

Keywords: Low pay; competing risk; Australia (search for similar items in EconPapers)
JEL-codes: J2 J3 J33 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-lab and nep-lma
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https://mpra.ub.uni-muenchen.de/50521/1/MPRA_paper_50521.pdf original version (application/pdf)

Related works:
Journal Article: The dynamics of low pay employment in Australia (2015)
Working Paper: The Dynamics of Low Pay Employment in Australia (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:50521

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