Journal Article

Low paid employment in Britain: estimating state-dependence and stepping stone effects

By Lixin Cai, Kostas Mavromaras and Peter Sloane

Publication details

Publication date
Published in
Oxford Bulletin of Economics and Statistics
Volume
80
Pages
pp. 283–326
Publisher
Blackwell
DOI
http://dx.doi.org/10.1111/obes.12197
ISSN
3059049

Summary

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.

Topics