Munich Personal RePEc Archive

The Dynamics of Low Pay Employment in Australia

Cai, Lixin (2015): The Dynamics of Low Pay Employment in Australia. Published in: International Journal of Manpower , Vol. 36, No. 7 (20 September 2015): pp. 1095-1123.

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Abstract

Using the Household, Income and Labour Dynamics in Australia (HILDA) survey, this study shows that workers who have entered low pay from higher pay also have a higher hazard rate of transitioning to higher pay; and those who have entered low pay from non-employment are more likely to return to non-employment. Union members, public sector jobs and working in medium to large size firms tend to increase the hazard rate of transitioning to higher pay, while immigrants from non-English speaking countries and workers with health problems have a lower hazard rate of moving into higher pay. There is some evidence that the longer a worker is on low pay, the less likely he or she is to transition to higher pay.

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