The inter-related dynamics of unemployment and low-wage employment

This paper examines the extent of state dependence in unemployment and the role played in this by intervening low-wage employment. A range of dynamic random and fixed effects estimators are compared. Low-wage employment is found to have almost as large an adverse effect as unemployment on future prospects and the difference in their effects is found to be insignificant. Evidence is presented that low-wage jobs act as the main conduit for repeat unemployment and considerably increases its probability. Obtaining a higher-wage job reduces the increased risk of repeat unemployment to insignificance

The relationship between the financial position of pensioners and their working-life earnings levels

This paper investigates the link between the incomes and wealth of pensioners and their working-life earnings levels. It uses the combination of detailed income and asset information and working-life history information available in the British Household Panel Survey. The proportionality predicted by a simple "stripped down" form of the life-cycle model is supported for pensioner couples and male single pensioners, but not for female single pensioners.incomes, wealth, pensions, housing wealth, life-cycle model

The Inter-related Dynamics of Unemployment and Low Pay

This paper examines the extent of state dependence in individual unemployment and low paid employment and the inter-related dynamics between the two. Evidence is presented that (after controlling for unobserved heterogeneity and initial conditions) the low paid are more likely to become unemployed and the unemployed more likely to be low paid on re-entry to employment. The impacts of unemployment and low pay are found to be insignificantly different from one another, both on the probability of unemployment in the next period and on the probability of low pay. Evidence is presented that low paid jobs act as the main conduit for repeat unemployment and considerably increase its probability. Those who get a better paid job eliminate the increased risk of repeat unemployment.unemployment, low pay, dynamics, state dependence, unobserved heterogeneity, wage mobility, dynamic random effects models, repeat unemployment, recurrent unemployment.

Wage Inequality, Minimum Wage Effects and Spillovers

This paper investigates possible spillover effects of the UK minimum wage. The halt in the growth in inequality in the lower half of the wage distribution (as measured by the 50:10 percentile ratio) since the mid 1990s, in contrast to the continued inequality growth in the upper half of the distribution, suggests the possibility of a minimum wage effect and spillover effects on wages above the minimum. This paper analyses individual wage changes, using both a difference-in-differences estimator and a specification involving cross-uprating comparisons, and concludes that there have not been minimum wage spillovers. Since the UK minimum wage has always been below the 10th percentile, this lack of spillovers implies that minimum wage changes have not had an effect on the 50:10 percentile ratio measure of inequality in the lower half of the wage distribution. JEL classification: J31 ; J38 ; J08.

Simplified Implementation of the Heckman Estimator of the Dynamic Probit Model and a Comparison with Alternative Estimators

This paper presents a convenient shortcut method for implementing the Heckman estimator of the dynamic random effects probit model and other dynamic nonlinear panel data models using standard software. It then compares the estimators proposed by Heckman, Orme and Wooldridge, based on three alternative approximations, first in an empirical model for the probability of unemployment and then in a set of simulation experiments. The results indicate that none of the three estimators dominates the other two in all cases. In most cases all three estimators display satisfactory performance, except when the number of time periods is very small.Dynamic discrete choice models ; initial conditions ; dynamic probit ; panel data ; dynamic nonlinear panel data models

The other margin : do minimum wages cause working hours adjustments for low-wage workers?

This paper estimates the impact of the introduction of the UK minimum wage on the working hours of low-wage employees using difference-in-differences estimators. The estimates using the employer-based New Earnings Surveys indicate that the introduction of the minimum wage reduced the basic hours of low-wage workers by between 1 and 2 hours per week. The effects on total paid hours are similar (indicating negligible effects on paid overtime) and lagged effects dominate the smaller and less significant initial effects within this. Estimates using the employee-based Labour Force Surveys are typically less significant.minimum wages ; working hours ; labour demand ; difference-in-differences estimator

Comment on VubV_{ub} from Exclusive Semileptonic B and D Decays

The prospects for determining $|V_{ub}|$ from exclusive B semileptonic decay are discussed. The double ratio of form factors $(f^{B\to\rho}/f^{B\to K^*})/ (f^{D\to\rho}/f^{D\to K^*})$ is calculated using chiral perturbation theory. Its deviation from unity due to contributions that are non-analytic in the symmetry breaking parameters is very small. Combining experimental data obtainable from (B->rho l nu), (B->K* l l) and (D->rho l nu) can lead to a model independent determination of $|V_{ub}|$ with an uncertainty from theory of about 10%.Comment: 14 pages, 3 figs, minor typos corrected, to appear in Phys. Lett.

The impact of the introduction of the UK minimum wage on the employment probabilities of low wage workers

This paper uses longitudinal data from three contrasting datasets (matched Labour Force Surveys, the British Household Panel Survey and matched New Earnings Surveys) to estimate the impact of the introduction of the UK minimum wage (in April 1999) on the probability of subsequent employment among those whose wages would have needed to be raised to comply with the minimum. A difference-in-differences estimator is used, based on position in the wage distribution. No significant adverse employment effects are found for any of the four demographic groups considered (adult and youth, men and women) or in any of the three datasets used

The estimation of pensioner equivalence scales using subjective data

This paper uses panel data on pensioners’ subjective evaluations of their financial positions to construct equivalence scales for pensioners. A pensioner couple is estimated to require an income 44% higher than a comparable single pensioner to reach the same standard of living. This is significantly less than the equivalence scale value implied by the ratio of state pension rates, the McClements equivalence scale value and the scale value derived from Engel curve estimation for food expenditure using the same data source. The estimated equivalence scale value is robust to variations in the definition of the pensioner sample, the measurement of income and the econometric model used.equivalence scales ; pensioner incomes ; pensions ; subjective data ; ordered response models ; Engel curves.

THE IMPACT OF THE INTRODUCTION OF THE UK MINIMUM WAGE ON THE EMPLOYMENT PROBABILITIES OF LOW WAGE WORKERS

This paper uses longitudinal data from three contrasting datasets (matched Labour Force Surveys, the British Household Panel Survey and matched New Earnings Surveys) to estimate the impact of the introduction of the UK minimum wage (in April 1999) on the probability of subsequent employment among those whose wages would have needed to be raised to comply with the minimum. A difference-indifferences estimator is used, based on position in the wage distribution. No significant adverse employment effects are found for any of the four demographic groups considered (adult and youth, men and women) or in any of the three datasets used.Minimum wage, employment determination, labour demand, difference-in-differences estimator.