The research note first presents a review of the literature on low-pay persistence and determination of income inequality and low pay. The definition and measurement of low pay and the approach used are then discussed, together with the data employed. Following this, the main characteristics of low-wage employment in European countries, low-pay incidence and its transition probabilities are de-scribed, with a focus on differences between CEE and WE countries. The results are presented, follow-ing an outline of the methodological background for the model estimations. The final section con-cludes and discusses the results in light of recent policy issues.

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