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Earnings Mobility Among Italian Low Paid Workers

Lorenzo Cappellari

No 1068, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper uses Italian panel data to analyse transition probabilities at the bottom of the earnings distribution during the 1990s. The analytical framework is characterised by the ability to account for the endogeneity of initial conditions, educational attainment and earnings attrition, providing a model that encompasses those applied by previous research. Results show that the three selection mechanisms are endogenous for the estimation of low pay transitions. The data also reveal considerable state dependence, i.e. the experience of low pay is found to raise, per se, the probability of subsequent low pay episodes. Low pay persistence and entry rates are found to be larger among female employees, the low educated, manual workers in small firms and workers from the South relative to otherwise comparable individuals.

Keywords: low pay; earnings mobility; initial conditions; earnings attrition; education (search for similar items in EconPapers)
JEL-codes: C23 C35 D31 J31 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2004-03
New Economics Papers: this item is included in nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published - published in: Journal of Population Economics, 2007, 20 (3), 465-482

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Related works:
Journal Article: Earnings mobility among Italian low-paid workers (2007) Downloads
Working Paper: Earnings mobility among Italian low paid workers (2001) Downloads
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