Low-Wage Employment in Czechia: A Persistent Burden

0568899 - SOÚ 2023 RIV SK eng J - Journal Article
Fialová, Kamila
Low-Wage Employment in Czechia: A Persistent Burden.
Ekonomický časopis. Roč. 70, č. 6 (2022), s. 475-498. ISSN 0013-3035. E-ISSN 0013-3035
R&D Projects: GA ČR(CZ) GA18-09220S
Institutional support: RVO:68378025
Keywords : low-wage employment * low pay * low pay persistence * EU-SILC data
OECD category: Applied Economics, Econometrics
Impact factor: 0.4, year: 2022
Method of publishing: Open access
https://www.sav.sk/journals/uploads/0103161306%2022%20Fialov%C3%A1%20+%20SR.pdf

Working for low pay may have substantial negative consequences at both the individual and societal level. This article adds to scarce research on low pay in Czechia, employing pooled longitudinal EU-SILC data for 2004 – 2017. It analyses patterns of low-wage employment and estimates the de-gree of low-pay persistence in terms of genuine state dependence in low-wage employment, accounting for both observed and unobserved heteroge-neity among workers and endogeneity in the initial conditions. The results indicate that low pay exhibits a significant degree of state dependence in Czechia: having a low-paid job on average increases the likelihood of stay-ing low paid in the future by 14 percentage points. The most important indi-vidual factors predisposing workers to earn low wages and get stuck in a low-paid job are low education and the female gender.
Permanent Link: https://hdl.handle.net/11104/0340177