Earnings mobility among Italian low-paid workers

This paper uses Italian panel data to analyse low pay transitions since the early 1990s. Results indicate that having more human capital reduces the probability of falling into low pay, but there is little impact on raising exit rates from low pay. Human capital effects are found to be larger for wo...

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Bibliographic Details
Published inJournal of population economics Vol. 20; no. 2; pp. 465 - 482
Main Author Cappellari, Lorenzo
Format Journal Article
LanguageEnglish
Published Heidelberg Springer 01.04.2007
Springer Nature B.V
Subjects
Capital depreciation
Correlation analysis
Earnings
Economic theory
Educational attainment
Employees
Employment
Gender
Heterogeneity
Households
Human capital
Income inequality
Inequality
Initial conditions
Italy
Labor market
Labor markets
Labour economics
Labour force
Labour mobility
Low income
Low income groups
Low pay
Men
Mobility
Modeling
Panel data
Preliminary estimates
Probability
Profits
Studies
Transition probabilities
Unemployment
Wage mobility
Wage rates
Wage structure
Wages & salaries
Italy
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Summary:This paper uses Italian panel data to analyse low pay transitions since the early 1990s. Results indicate that having more human capital reduces the probability of falling into low pay, but there is little impact on raising exit rates from low pay. Human capital effects are found to be larger for women than for men. There is considerable state dependence: the experience of low pay raises the probability of subsequent low pay episodes. Also, there is substantial unobserved heterogeneity associated with factors such as initial conditions, mobility out of the earnings distribution and educational attainment.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0933-1433
1432-1475
DOI:10.1007/s00148-006-0065-z