Low-wage employment and mobility in Spain

Abstract

The issue of low-wage employment has received increased interest during recent decades in many European countries. In this paper I analyse the patterns of low-wage employment in Spain. Using a sample of Spanish workers extracted from the European Community Household Panel for the period 1995-2001, I first analyse the earnings distribution as a whole, and how low-wage employment has evolved over the period 1995-2001. Furthermore, I examine the determinants of low-wage employment using an analytical framework that is characterized by the ability to account for the endogeneity of initial conditions. Finally, I explore the effects of low pay on job mobility in Spain. For this purpose I adopt an approach based on competing risks in order to allow for different risks of failure. © 2008 The Authors Journal compilation © 2008 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd.