Low-wage employment and mobility in Spain

The issue of low-wage workers has received increased interest during last decades in many European countries. In this paper I analyse the patterns of low-wage employment in the Spanish labour market. 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, looking at the characteristics of low, medium and high paid jobs. I also look at the evolution of these jobs over the period 1995-2001. Furthermore, I examine the determinants of being in a low-paid job using an analytical framework that is characterised by the ability to account for the endogeneity of initial conditions. Finally, I explore the effects of low pay on job mobility. For this purpose I adopt an approach based on competing risks in order to allow for different risks of failure