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Human capital formation and changes in low pay persistence.
- Source :
- Applied Economics; 2023, Vol. 55 Issue 56, p6583-6604, 22p
- Publication Year :
- 2023
-
Abstract
- This study presents new empirical evidence on the role of time trends in low pay persistence. We utilize population-wide tax records to track monthly labour market trajectories of initially low-paid workers. By performing age- and qualification-specific regressions, we find that low pay persistence reduces with time. However, the magnitude is highly heterogeneous across workforce characteristics. For a qualified worker in their early 20s, the risk of staying on low-pay declines by, on average, 5–10% points after one year. For a worker in their 50s, persistence remains almost unchanged regardless of their qualification level. We conclude that policy initiatives need to be more nuanced than a simple one-size-fits-all approach by accounting for time trends in low-pay persistence. [ABSTRACT FROM AUTHOR]
- Subjects :
- HUMAN capital
LABOR market
LABOR supply
Subjects
Details
- Language :
- English
- ISSN :
- 00036846
- Volume :
- 55
- Issue :
- 56
- Database :
- Complementary Index
- Journal :
- Applied Economics
- Publication Type :
- Academic Journal
- Accession number :
- 173179913
- Full Text :
- https://doi.org/10.1080/00036846.2022.2161989