Low Pay Persistence in European Countries

34 Pages Posted: 21 Jul 2009

See all articles by Kenneth Clark

Kenneth Clark

University of Manchester - School of Social Sciences; IZA Institute of Labor Economics

Nikolaos Kanellopoulos

The Centre for Planning and Economic Research (KEPE)

Multiple version iconThere are 2 versions of this paper

Date Written: July 2009

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

JEL Classification: C23, C25, J31, J69

Suggested Citation

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

Ken Clark (Contact Author)

University of Manchester - School of Social Sciences ( email )

Oxford Road
Manchester, M13 9PL
United Kingdom
0161-275-3679 (Phone)

IZA Institute of Labor Economics

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

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