Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35534
Authors: 
Clark, Ken
Kanellopoulos, Nikolaos C.
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 4183
Abstract: 
Using panel data for twelve European countries over the period 1994-2001 we estimate the extent of state dependence in low pay. Controlling for observable and unobservable heterogeneity as well as the endogeneity of initial conditions we find positive, statistically significant state dependence in every single country. The magnitude of this effect varies by country, however this variation is not systematically related to labour market institutions.
Subjects: 
Low pay
low pay persistence
state dependence
initial conditions
dynamic random effects probit models
JEL: 
C23
C25
J31
J69
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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