Abstract
Abstract. The issue of low‐wage employment has received increased interest during recent decades in many European countries. In this paper I analyse the patterns of low‐wage employment in Spain. 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, and how low‐wage employment has evolved over the period 1995–2001. Furthermore, I examine the determinants of low‐wage employment using an analytical framework that is characterized by the ability to ac count for the endogeneity of initial conditions. Finally, I explore the effects of low pay on job mobility in Spain. For this purpose I adopt an approach based on competing risks in order to allow for different risks of failure.
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