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  • Literaturhinweis

    Minimum Wage and Skills - Evidence from Job Vacancy Data (2023)

    Andrieu, Elodie; Kuczera, Malgorzata;

    Zitatform

    Andrieu, Elodie & Malgorzata Kuczera (2023): Minimum Wage and Skills - Evidence from Job Vacancy Data. (TPI working papers / The Productivity Institute 034), Manchester, 62 S.

    Abstract

    "Low-wage occupations tend to be populated by workers with low levels of education. An increase in the minimum wage, while designed to protect workers in the lower part of the wage distribution, might result in unintended consequences for those same workers. In this paper, we study firms’ reaction to higher minimum wages, exploiting a change to the minimum-wage policy in the UK in 2016. We document how an increase in the minimum wage affects the labour hiring for different education and technical skill levels of workers. The results show that an increase in the minimum wage compressed both the demand for low educated workers and the demand for workers with low levels of technical skills (tech workers) for graduates in low and middle skilled occupations. Using a difference-in-differences framework, we find that a large and unexpected change to the minimum wage led to a 11 percentage point decrease in the proportion of non-graduate vacancies and a 15 percentage point decline in the share of low-tech ads. There is evidence for labour-labour substitution at the low-end of the skill distribution and labour-technology substitution for more educated workers as a way to compensate for labour costs increases." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Young retail shift workers (not) planning their future: working with customers in the 24/7 service society in the transition to adulthood (2022)

    Dordoni, Annalisa ;

    Zitatform

    Dordoni, Annalisa (2022): Young retail shift workers (not) planning their future: working with customers in the 24/7 service society in the transition to adulthood. In: The international journal of sociology and social policy, Jg. 42, H. 13/14, S. 66-80. DOI:10.1108/IJSSP-02-2022-0060

    Abstract

    "Purpose: The retail sector is not largely studied in Italy. The study offers a comparison between youth retail shift work in Milan and London. The aim of this paper is to contribute to the debate on the one hand on youth work and on the other hand to the debate on agency and structural factors in life planning, representation of the future and the transition to adulthood, observed in the United Kingdom's and Italian labour market. Even if the second one is a Southern European Country, these contexts are both characterised by a service-oriented economy and the widespread of precarious and flexible jobs. Design/methodology/approach: Qualitative methods were used: one year of ethnographic observation, 50 interviews and two focus groups were carried out between 2015 and 2018 with retail workers and trade unionists. The contexts are Corso Buenos Aires in Milan, Italy, and Oxford Street in London, United Kingdom. Analysing young workers' discourses, the author identifies narratives that allow to grasp their present agency and imagined future. Findings: Observing the crisis of the narrative (Sennett, 2020) allows to highlight the social consequences of working times on young workers' everyday life and future. The author argues that young workers struggle with the narrative of their present everyday life and the representation of the future. This relates to the condition of time alienation due to the flexible schedules and the fast pace of work in retail, both affecting the work-life balance. Originality/value: The social consequences of flexible schedules in retail and fast fashion sector, which are new issues not yet sufficiently explored, are here investigated from the perspective of young workers. The study is focussed on the representations of young people working with customers in social and economic contexts characterised by flexible schedules and the deregulation of shop openings, the so-called 24/7 service society, not largely investigated in the sociological scientific literature, above all in the Italian context." (Author's abstract, IAB-Doku, © Emerald Group) ((en))

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  • Literaturhinweis

    Minimum wage and tolerance for inequality (2022)

    Fazio, Andrea ; Reggiani, Tommaso ;

    Zitatform

    Fazio, Andrea & Tommaso Reggiani (2022): Minimum wage and tolerance for inequality. (MUNI ECON working paper 2022-07), Brno, 19 S.

    Abstract

    "We suggest that people advocate for equality also because they fear income losses below a given reference point. Stabilizing their baseline income can make workers more tolerant of inequality. We present evidence of this attitude in the UK by exploiting the introduction of the National Minimum Wage (NMW), which institutionally set a baseline pay reducing the risk of income losses for British workers at the bottom of the income distribution. Based on data from the British Household Panel Survey, we show that workers that benefited from the NMW program became relatively more tolerant of inequality and more likely to vote for the Conservative party." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    The Minimum Income Standard and equivalisation: reassessing relative costs of singles and couples and of adults and children (2021)

    Hirsch, Donald ; Math, Antoine; Padley, Matt; Pereirinha, José; Pereira, Elvira ; Thornton, Robert; Concialdi, Pierre;

    Zitatform

    Hirsch, Donald, Pierre Concialdi, Antoine Math, Matt Padley, Elvira Pereira, José Pereirinha & Robert Thornton (2021): The Minimum Income Standard and equivalisation. Reassessing relative costs of singles and couples and of adults and children. In: Journal of Social Policy, Jg. 50, H. 1, S. 148-167. DOI:10.1017/S0047279419001004

    Abstract

    "Equivalence scales, used to compare incomes across household types, strongly influence which households have low reported income, affecting public policy priorities. Yet they draw on abstract, often dated evidence and arbitrary judgements, and on comparisons across the income distribution rather than focusing on minimum requirements. Budget standards provide more tangible comparisons of the minimum required by different household types. The Minimum Income Standard (MIS) method, now established in several countries, applies a common methodological framework for compiling budgets, based on public deliberations. This article draws for the first time on results across countries. In all of the four countries examined, it identifies an under-estimation by the OECD scale of the relative cost of children compared to adults, and, in three of the four, an under-estimation of the cost of singles compared to couples. This more systematically corroborates previous, dispersed evidence, and helps explain which specific expenditure categories influence these results. These results have high policy relevance, showing greater proportions of low income households to contain children than standard income distribution data. While no single equivalence scale can be universally accurate, making use of evidence based directly on benchmarks such as MIS can help inform public priorities in tackling low income." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Part-time employment and the gender gap in low pay for UK employees: what changed over the period 1996–2016? (2021)

    Nightingale, Madeline ;

    Zitatform

    Nightingale, Madeline (2021): Part-time employment and the gender gap in low pay for UK employees: what changed over the period 1996–2016? In: Community, work & family, Jg. 24, H. 3, S. 272-290. DOI:10.1080/13668803.2019.1681938

    Abstract

    "This article assesses the contribution of part-time employment to the gender gap in low pay for UK employees 1996–2016. Over this period, there has been a sustained decline in the importance of part-time employment as a contributing factor to the gender gap in low pay. This is largely due to the fact that the link between part-time employment and low pay has become weaker over time (shifts in the gender composition of the part-time workforce are found to be less important). However, part-time work continues to play a crucial role in shaping persistent gender inequality in low pay for UK employees." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    The Low Income Gap: A New Indicator Based on a Minimum Income Standard (2020)

    Hirsch, Donald ; Padley, Matt; Stone, Juliet; Valadez-Martinez, Laura;

    Zitatform

    Hirsch, Donald, Matt Padley, Juliet Stone & Laura Valadez-Martinez (2020): The Low Income Gap. A New Indicator Based on a Minimum Income Standard. In: Social indicators research, Jg. 149, H. 1, S. 67-85. DOI:10.1007/s11205-019-02241-6

    Abstract

    "In many high-income countries, governments seek to ensure that households at least have sufficient incomes to afford basic essentials such as food and clothing, but also to help citizens reach socially acceptable living standards allowing full participation in society. Their success in doing so is commonly monitored in terms of how many citizens are below a poverty line set relative to median income, and by how far below it they fall (the 'poverty gap'). Yet the threshold below which this gap starts to be measured is arbitrary, begging the question of what level of low income needs addressing. A more ambitious measure, presented in this paper, considers the extent to which people fall short of a benchmark representing a socially agreed minimum standard. This 'low income gap' can be used to represent the distance a society has to go to eliminate income that is undesirably low. The paper presents the indicator, its meaning and some recent trends in the United Kingdom, where the methodology behind the indicator has been pioneered. The results demonstrate that this empirically derived benchmark has the potential to be of value in other countries, in assessing whether they are making progress in reducing low income." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

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  • Literaturhinweis

    Stepping-stone or dead end: To what extent does part-time employment enable progression out of low pay for male and female employees in the UK? (2020)

    Nightingale, Madeline ;

    Zitatform

    Nightingale, Madeline (2020): Stepping-stone or dead end: To what extent does part-time employment enable progression out of low pay for male and female employees in the UK? In: Journal of social policy, Jg. 49, H. 1, S. 41-59. DOI:10.1017/S0047279419000205

    Abstract

    "Using data from Understanding Society and the British Household Panel Survey, this article explores the relationship between working part-time and progression out of low pay for male and female employees using a discrete-time event history model. The results show that working part-time relative to full-time decreases the likelihood of progression out of low pay, defined as earning below two-thirds of the median hourly wage. However, part-time workers who transition to full-time employment experience similar rates of progression to full-time workers. This casts doubt on the idea that part-time workers have lower progression rates because they have lower abilities or work motivation and reinforces the need to address the quality of part-time jobs in the UK labour market. The negative effect of working part-time is greater for men than for women, although women are more at risk of becoming trapped in low pay in the sense that they tend to work part-time for longer periods of time, particularly if they have children. Factors such as childcare policy and Universal Credit (UC) incentivise part-time employment for certain groups, although in the right labour market conditions UC may encourage some part-time workers to increase their working hours." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Should we clash or should I go? The impact of low wage and poor working conditions on the exit-voice trade-off (2019)

    Godechot, Olivier; Salibekyan, Zinaïda;

    Zitatform

    Godechot, Olivier & Zinaïda Salibekyan (2019): Should we clash or should I go? The impact of low wage and poor working conditions on the exit-voice trade-off. In: Labour, Jg. 33, H. 4, S. 425-449. DOI:10.1111/labr.12155

    Abstract

    "We use two linked employer - employee datasets to adapt Hirschman's model of consumer behaviour into the labour market and to argue that dissatisfaction with pay should favour exit while dissatisfaction with working conditions should favour voice. A deterioration of our working conditions index increases the probability of participation in collective action when an increase in log hourly wage decreases the probability of quitting. A rationale for this trade-off is based on information: first, information on the price of alternative options is more accessible than information on their quality; second, voice produces more information than exit and favours opportunities for specific improvements." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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  • Literaturhinweis

    Tax credits and in-work poverty in the UK: an analysis of income packages and anti-poverty performance (2019)

    Hick, Rod ; Lanau, Alba;

    Zitatform

    Hick, Rod & Alba Lanau (2019): Tax credits and in-work poverty in the UK. An analysis of income packages and anti-poverty performance. In: Social policy and society, Jg. 18, H. 2, S. 219-236. DOI:10.1017/S1474746418000118

    Abstract

    "This article examines the relationship between tax credits and in-work poverty, drawing on the findings from a major national study on in-work poverty. We present an analysis of (i) the income packages of working families and (ii) the performance of tax credits in relation to anti-poverty objectives, drawing on data from the Households Below Average Income survey between 2004/5 and 2014/15. Our study generates five novel findings, including that tax credits reduce the poverty gap of recipient households by two-thirds; that tax credit cuts post-2010/11 have served to focus payments on single parent families and households with greater numbers of children; and that tax credits make up just one third of the social security income of working households. We argue that understanding in greater depth the interaction between tax credits and income adequacy amongst working families is necessary to provide a firmer foundation for an effective assault on in-work poverty." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Local unemployment changes the springboard effect of low pay: Evidence from England (2019)

    Plum, Alexander ; Knies, Gundi;

    Zitatform

    Plum, Alexander & Gundi Knies (2019): Local unemployment changes the springboard effect of low pay: Evidence from England. In: PLoS ONE, Jg. 14, H. 11. DOI:10.1371/journal.pone.0224290

    Abstract

    "There is considerable debate on whether the employment and earnings prospects are better for those on low pay or for the unemployed. Low-pay work tends to be undertaken more locally but no empirical analysis has focused on how local opportunities alter prospects. Using Understanding Society data for England matched with local unemployment rates, we estimate dynamic random effects panel models, which show robust evidence that the future unemployment risk is lower for those who are currently on low pay compared to those who are currently unemployed. The low-paid also have a higher chance than the unemployed of becoming higher-paid. These findings are most marked in neighbourhoods with high unemployment." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    The British low-wage sector and the employment prospects of the unemployed (2019)

    Plum, Alexander ;

    Zitatform

    Plum, Alexander (2019): The British low-wage sector and the employment prospects of the unemployed. In: Applied Economics, Jg. 51, H. 13, S. 1411-1432. DOI:10.1080/00036846.2018.1527454

    Abstract

    "Are low wages a way for the unemployed to switch to higher-paying jobs? Using data from the British Household Panel Survey, the labour market dynamics of unemployed, low-paid and higher-paid employed men are analysed. Moreover, the respective (un)employment duration and occupational skill level are accounted for. Results show that in general low wages significantly reduce the risk of future unemployment and increase the chances of ascending the salary ladder, especially in the case of long-term unemployment (>360 days). Furthermore, the occupational skill level has a substantial influence on the upward mobility of low-paid jobs: individuals working in the initial period in a low-paid and higher-skilled occupation have on average an 11 percentage points higher probability of entering higher pay compared to when working in a low-paid and low-skilled occupation." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Real wages, amenities and the adjustment of working hours across local labour markets (2019)

    Schlüter, Teresa ;

    Zitatform

    Schlüter, Teresa (2019): Real wages, amenities and the adjustment of working hours across local labour markets. In: Papers in regional science, Jg. 98, H. 3, S. 1291-1316. DOI:10.1111/pirs.12413

    Abstract

    "High prices that are not offset by equally high incomes are often seen as an affordability problem. To get by, poorer workers in these areas might have to work longer hours. Alternatively, lower real wages might indicate a more desirable place to live and induce high-income people to trade off cash for leisure time. Both interpretations suggest a link between real wages and an individual's labour supply choice. Using panel data, I observe how working hours change, when workers move place. I find that working hours increase by 0.42% for a 10% decrease of local real wage. The effect is stronger for low-skilled workers at the bottom of the wage distribution, indicating an affordability mechanism that might further exacerbate inequality." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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  • Literaturhinweis

    Poverty trends in Germany and Great Britain: the impact of changes in labour markets, families, and social policy (2018)

    Brülle, Jan ;

    Zitatform

    Brülle, Jan (2018): Poverty trends in Germany and Great Britain. The impact of changes in labour markets, families, and social policy. (Research), Wiesbaden: Springer VS, 319 S. DOI:10.1007/978-3-658-20892-9

    Abstract

    "Jan Brülle shows how poverty risks in Germany between 1992 and 2012 increased concentrated on those with low educational levels, in lower occupational positions, and with precarious employment careers, as the country's welfare state failed to adapt to widening inequalities in households' market incomes. Contrasting the German experience with Great Britain, where social transfers to low-income families in concert with favourable labour market conditions helped to reduce poverty between 1992 and the global financial crisis, he presents the most comprehensive comparative study on poverty trends in these two countries to date. Moving beyond a cross-sectional perspective on poverty, the author analyses why it became not only more frequent in Germany, but also more persistent in individual life-courses, and why faster exits have driven the decline in poverty in Great Britain." (Publisher information, IAB-Doku) ((en))

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  • Literaturhinweis

    Low income dynamics among ethnic minorities in Great Britain (2018)

    Hernandez, Victor Perez; Nandi, Alita; Kanabar, Ricky;

    Zitatform

    Hernandez, Victor Perez, Ricky Kanabar & Alita Nandi (2018): Low income dynamics among ethnic minorities in Great Britain. (ISER working paper 2018-06), Colchester, 55 S.

    Abstract

    "Using data from Understanding Society, and robust estimation methods we find that Pakistani and Bangladeshi groups have the highest poverty entry rates (23-26%), followed by Indian, black Caribbean and black African groups (9-11%) and the white majority (6%). Indians and Pakistani's have the highest poverty persistence rates (66%), white majority the lowest (52%), the remaining groups around 55%. We find consider- able within group heterogeneity: for most groups, education of the head of household (HoH) and household employment rate reduces poverty entry risk, while the presence of children increases it (education does not matter for black African and Bangladeshi groups and presence of children for Bangladeshi, black Caribbean and black African groups). We also find that living in London reduces the risk of poverty entry for Indians and white majority while ill-health of the HoH increases the poverty entry risk for white majority. The only factor that affects the risk of poverty persistence is household type although the type of household that matters varies across ethnic group. We also show that simple models which ignore initial poverty status and non-random attrition in estimating poverty persistence and poverty entry, underestimate (overestimate) the magnitude of poverty persistence for the Indian (black African) groups. Finally, we find scarring effects of experiencing poverty for black African and white majority groups." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    The 'Great Recession' and low pay in Europe (2018)

    Vacas-Soriano, Carlos;

    Zitatform

    Vacas-Soriano, Carlos (2018): The 'Great Recession' and low pay in Europe. In: European journal of industrial relations, Jg. 24, H. 3, S. 205-220. DOI:10.1177/0959680117715932

    Abstract

    "This article contributes to the literature on low-paid work by analysing the shares of low-paid employment in the period 2006 - 2014 and the underlying causes. I use an inflation-adjusted low-pay threshold anchored at 60 percent of median wages to assess the impact of the Great Recession, which increased the share of low-paid employees in two-thirds of European countries and in the EU as a whole. This was driven by a general decline in real wages, which was particularly intense in European periphery countries and at the bottom of the wage distribution as well as among employees with shorter tenure. However, compositional effects either prevented a larger expansion of low-pay shares by masking the real extent of the wage correction or were generally negligible in driving low-pay shares. Moreover, growing part-time employment emerges as a significant source of low-paid work from the onset of the crisis." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Improving productivity and job quality of low-skilled workers in the United Kingdom (2018)

    Zwart, Sanne; Baker, Mark;

    Zitatform

    Zwart, Sanne & Mark Baker (2018): Improving productivity and job quality of low-skilled workers in the United Kingdom. (OECD Economics Department working papers 1457), Paris, 36 S. DOI:10.1787/14dfd584-en

    Abstract

    "More than a quarter of adults in the United Kingdom have low basic skills, which has a negative impact on career prospects, job quality and productivity growth. Furthermore, unlike most other countries, young adults do not have stronger basic skills than the generation approaching retirement. The lack of skills development starts at young ages and continues in secondary education; despite a modest reduction in recent years, the educational attainment gap between disadvantaged and non-disadvantaged students remains high. The low participation in lifelong learning of low-skilled individuals puts them at risk of falling behind in meeting the changing skill demands of the dynamic labour market. Ongoing reforms to the vocational education and training (VET) system and apprenticeship system should have a positive impact on low-skilled productivity, enabling students to gain the necessary basic skills and for workers to find quality jobs. Improving the targeting of active labour market policies, and ensuring that the ongoing increases in the national living wage are delivered in a sustainable way will also play an important role in improving job quality and reducing the high rate of youth neither employed or in education or training. Policy responses to the rise of non-standard work will also be essential in improving the job quality of the low-skilled." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Money-related meanings and practices in low-income and poor families (2017)

    Daly, Mary ;

    Zitatform

    Daly, Mary (2017): Money-related meanings and practices in low-income and poor families. In: Sociology, Jg. 51, H. 2, S. 450-465. DOI:10.1177/0038038515616355

    Abstract

    "This article focuses on the meanings and repertoires of action associated with money in low-income and poverty circumstances. Based on interviews with 51 people, the analysis reveals how people on a low income actively engage with money as a way of situating themselves in their complex worlds. Money is investigated at two levels: praxis and orientation regarding spending, and as part of self-identity. In regard to spending, people displayed two main repertoires: one was functional (viewing money as a way of meeting material need) and the second relational (with money interpreted in regard to relationships and upholding of personal and familial values). These repertoires in turn link into self-understanding and world view. For people in poverty and low income, money can be a disabler, detracting from a valued identity and sense of future but a counter, more positive, orientation normalises lack of money, by reference to skills and character development and core values and relationships. The research as a whole underlines the complexity of money in low-income or poverty settings, the agency and creativity which people bring to its use and the diverse meanings they invest it with." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Ethnicity and low wage traps: favouritism, homosocial reproduction and economic marginalization (2017)

    Hudson, Maria; Netto, Gina; Lima, Philomena de; Kamenou-Aigbekaen, Nicolina; Sosenko, Filip; Noon, Mike;

    Zitatform

    Hudson, Maria, Gina Netto, Mike Noon, Filip Sosenko, Philomena de Lima & Nicolina Kamenou-Aigbekaen (2017): Ethnicity and low wage traps. Favouritism, homosocial reproduction and economic marginalization. In: Work, employment and society, Jg. 31, H. 6, S. 992-1009. DOI:10.1177/0950017016674898

    Abstract

    "This article analyses the relationship between cultural difference, social connections and opportunity structures using interview evidence from low-paid workers and managers in local government, the health service, facilities management and housing. Exploring the operation of homosocial reproduction it reveals the double-edged nature of informality and the role of favouritism in particular in perpetuating ethnic advantage and privilege. While demonstrating that uses of homosocial reproduction need to be sensitive to intersections of identities or categories of difference, the article adds further evidence of the persistent gap between equal opportunities policies and practice for ethnic minorities in the United Kingdom labour market. The article concludes that stronger forms of positive action, and even positive discrimination, are needed to address the low pay traps and restricted opportunities of ethnic minority workers." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Exclusionary employment in Britain's broken labour market (2016)

    Bailey, Nick ;

    Zitatform

    Bailey, Nick (2016): Exclusionary employment in Britain's broken labour market. In: Critical social policy, Jg. 36, H. 1, S. 82-103. DOI:10.1177/0261018315601800

    Abstract

    "There is growing evidence of the problematic nature of the UK's 'flexible labour market' with rising levels of in-work poverty and insecurity. Yet successive governments have stressed that paid work is the route to inclusion, focussing attention on the divide between employed and unemployed. Past efforts to measure social exclusion have tended to make the same distinction. The aim of this article is to apply Levitas et al.'s (2007) framework to assess levels of exclusionary employment, i.e. exclusion arising directly from an individual's labour market situation. Using data from the Poverty and Social Exclusion UK survey, results show that one in three adults in paid work is in poverty, or in insecure or poor quality employment. One third of this group have not seen any progression in their labour market situation in the last five years. The policy focus needs to shift from 'Broken Britain' to Britain's broken labour market." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Low paid employment in Britain: estimating state-dependence and stepping stone effects (2016)

    Cai, Lixin; Mavromaras, Kostas; Sloane, Peter;

    Zitatform

    Cai, Lixin, Kostas Mavromaras & Peter Sloane (2016): Low paid employment in Britain. Estimating state-dependence and stepping stone effects. (IZA discussion paper 9633), Bonn, 35 S.

    Abstract

    "Using 18 waves of the British Household Panel Study, this paper examines state dependence and stepping stone effects of low pay. A distinguishing feature is that five types of transition- not in the labour force (NILF), unemployment, self-employment, low pay and higher pay are modelled separately. 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." (Author's abstract, IAB-Doku) ((en))

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