The Probability of Leaving a Low-Paid Job in Spain: The Importance of Switching into Permanent Employment

  • Maite Blazquez Universidad Autónoma de Madrid
Palabras clave: Low-wage employment, job mobility, type of contract, Heckman probit


This paper is aimed at analyzing the opportunities of getting a better paid job for those workers at the bottom of the earnings distribution. For this purpose I use the European Community Household Panel Survey (ECHP, 1995-2001), from which a sample of Spanish workers aged 16-64 years old has been drawn. The econometric technique consists of a Heckman selection probit model that allows me to account for the endogeneity of initial conditions. Results show that switching into permanent contract, either when remaining with the current employer or when changing employer significantly increases the likelihood of leaving a low pay situation.