Minimum wage job can represent a low wage trap - ESRI

A minimum wage job can be a stepping stone to higher paid work, but such work can represent a low wage trap for certain groups of workers, according to the latest research from the Economic and Social Research Institute.

The ESRI study reveals that in a nine month period in 2016-2017, almost a third of 1,514 workers surveyed progressed from the minimum wage to higher paid employment.

Ninety per centof those did so with the same employer.

Minimum wage employees are more likely to progress to higher pay if they are Irish nationals, older workers, better educated, and in full time, permanent employment.

But it is far harder to move out of minimum wage work for non-Irish citizens, younger workers, those working part time or on temporary contracts, and with lower educational attainment.

The ESRI states: "This suggests that [National Minimum Wage] employment is likely to represent a low wage trap for particular groups of workers".

Minimum wage workers are more likely to become unemployed that higher paid employees.

The authors stress that, while they can identify workers exiting minimum wage status, they cannot assess the extent to which those individuals are also exiting low-paid employment.

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NEWS IRELAND BUSINESS ECONOMY ESRI,MINIMUM WAGE
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