In-work poverty is now the most common experience of poverty for adults in the UK. One potential mechanism for alleviating in-work poverty is for low-paid workers to progress into higher paid jobs. However, most anti-poverty policy focuses on getting people into work, rather than progressing into higher paid work. Outside the context of poverty, low-paid work and progression have been studied in economics using three concepts: state dependence, where individuals are stuck in low-paid work; cycling, where individuals move between low-paid work and unemployment, and stepping stone effects, where low-paid work is a step towards higher-paid work.
There is evidence for both stepping stone and state dependence effects in analysis using British Household Panel Survey (BHPS) data. But how can both effects occur simultaneously? The answer is likely to lie in the heterogeneity of low-paid jobs, the heterogeneity of workers, or a mixture of both. Furthermore, there could be other intangible effects that are not uncovered through survey methods.
This thesis uses a mixed methods approach to understand opportunities and barriers to progression for low-paid workers in the context of poverty. Analysis of 29 waves of the BHPS and Understanding Society datasets was undertaken to explore differences in socioeconomic characteristics between low-paid workers who remain in low pay and those who progress into higher pay. This showed statistically significant differences between the samples across poverty, firm size, and sector.
Semi-structured interviews were conducted with 22 individuals who were either currently low-paid or were low-paid in the past two years and had progressed to higher paying jobs. This qualitative data underpinned the creation of a framework outlining four components which impact an individuals’ ability to progress in work: information and networks, competency, capacity, and aspirations and values. Relevant recommendations for policymakers and employers have been provided based on both data sources.
Date of Award | 8 Aug 2024 |
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Original language | English |
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Awarding Institution | - University Of Strathclyde
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Sponsors | University of Strathclyde |
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Supervisor | Stuart McIntyre (Supervisor) & Patricia Findlay (Supervisor) |
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