- List of Figures
- List of Tables
- List of Contributors
- Equality: Its Justification, Nature, and Domain
- The Measurement of Economic Inequality
- Income Inequality in Richer and OECD Countries
- Functional Distribution and Inequality
- Wealth and Economic Inequality
- Top Incomes
- Inequality and Earnings Distribution
- Inequality and the Labor Market: Employers
- Inequality and the Labor Market: Unions
- Low Pay
- Gender and Economic Inequality
- Economic Inequality, Poverty, and Social Exclusion
- Inequality and Time Use in the Household
- Inequality and Happiness
- Health and Economic Inequality
- Education and Inequality
- Demographic Transformation and Economic Inequality
- International Migration, Ethnicity, and Economic Inequality
- Intergenerational Income Mobility and the Role of Family Background
- Intragenerational Inequality and Intertemporal Mobility
- Inequality and Economic Growth
- Globalization and Inequality
- Poverty and Inequality: The Global Context
- Economic Inequality and the Welfare State
- The Political Economy of Inequality and Redistribution
- Prospects for Achieving Equality in Market Economies
Abstract and Keywords
This article focuses on the significance of low pay, investigating: who is low paid and why, and who is low paying and why? This elaborates on two important aspects: the determinants of being paid a wage towards the bottom of the earnings distribution, and the individual chances of remaining in the lower part, moving into or out of it, and up or down the distribution. Section 2 discusses the economic analysis of low pay. Section 3 presents definitions, measurement, and data issues. In Section 4, some stylized facts on low pay are presented and the main results from the empirical literature are critically reviewed. Section 5 contains a discussion of policy issues and suggestions for future research.
Claudio Lucifora is Professor of Economics at the Università Cattolica in Milan and IZA research fellow. He has published books on low pay employment, the economics of education, and the shadow economy, as well as articles in refereed journals on earnings mobility, wage determination, unemployment, and labor market institutions. He has been the treasurer and an elected member of the Executive Committee of the European Association of Labour Economics.
Wiemer Salverda is Director of the Amsterdam Institute for Advanced Labour Studies (AIAS) at the University of Amsterdam. He also coordinates the activities of the European Low-Wage Employment Research network (LoWER), which was established in 1996 with the support of the European Commission. He contributes expert advice to the OECD, EU, and ILO. His research focuses on the low-wage labor market and earnings inequality from an international comparative perspective, in particular the role of labor and product demand and the interaction with labor supply. His work also targets comparative employment performance, top incomes, ageing, and the evolution of youth labor.
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