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Low Pay Persistence in European Countries


Kenneth Clark


University of Manchester - School of Social Sciences; Institute for the Study of Labor (IZA)

Nikolaos Kanellopoulos


The Centre for Planning and Economic Research (KEPE)
July 2009

SOEPpaper No. 207

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.

Number of Pages in PDF File: 34

Keywords: Low pay, low pay persistence, state dependence, initial conditions, dynamic random effects probit models

JEL Classification: C23, C25, J31, J69

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Date posted: July 21, 2009  

Suggested Citation

Clark, Kenneth and Kanellopoulos, Nikolaos, Low Pay Persistence in European Countries (July 2009). SOEPpaper No. 207. Available at SSRN: http://ssrn.com/abstract=1436880 or http://dx.doi.org/10.2139/ssrn.1436880

Contact Information

Ken Clark (Contact Author)
University of Manchester - School of Social Sciences ( email )
Oxford Road
Manchester, M13 9PL
United Kingdom
0161-275-3679 (Phone)
Institute for the Study of Labor (IZA)
Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany
Nikolaos Kanellopoulos
The Centre for Planning and Economic Research (KEPE) ( email )
11, Amerikis str.
Athens, 106 72
Greece
Feedback to SSRN (Beta)


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