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Low Paid Employment in Britain: Estimating State‐Dependence and Stepping Stone Effects
Author(s) -
Cai Lixin,
Mavromaras Kostas,
Sloane Peter
Publication year - 2018
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/obes.12197
Subject(s) - stepping stone , economics , state (computer science) , low wage , state dependent , wage , labour economics , panel data , demographic economics , econometrics , macroeconomics , keynesian economics , mathematics , unemployment , algorithm
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.