Using 18 waves of the British Household Panel Study, this paper examines state‐dependence and stepping stone effects of low pay. 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.
Oxford Bulletin of Economics & Statistics – Wiley
Published: Jan 1, 2018
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