Human capital formation and changes in low pay persistence

C-Tier
Journal: Applied Economics
Year: 2023
Volume: 55
Issue: 56
Pages: 6583-6604

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:taf:applec:v:55:y:2023:i:56:p:6583-6604
Journal Field
General
Author Count
2
Added to Database
2026-01-29