Purpose – The purpose of this paper is to enhance understanding low pay dynamics of Australian employees, with a focus on the determination of low pay duration. Design/methodology/approach – The study draws on a representative longitudinal survey of Australian households to provide empirical...

Using the HILDA Survey, this study examines state-dependence and stepping stone effects of low pay in Australia. The results show that both state-dependence and stepping stone effects of low pay are present after observed and unobserved individual heterogeneity is accounted for. The results also...

Using the Household, Income and Labour Dynamics in Australia (HILDA) survey, this study shows that the largest proportion of low pay spells originated from higher pay; only a small proportion were from non-employment or recent graduates. While the majority of low pay spells transitioned to...