The Dynamics of Low Pay in Rural Households: Exploratory Analysis Using the British Household Panel Survey

This paper considers a low pay dynamics of rural residents by comparing rural and non‐rural sub‐samples of individuals drawn from the British Household Panel Survey. Descriptive analysis suggests that the overall rate of rural exits from low pay was less and that rural low pay persistence was higher than those found in the non‐rural case. Results from regression analysis indicate that rural differences in overall mobility can be attributable to differences in the characteristics of the rural and non‐rural samples, e.g., education levels, structure of employment, etc. However, once sample selection problems are controlled there remains a residual rural effect consistent with the claim that ‐ all other things being equal ‐ rural low pay is a more persistent phenomenon than its non‐rural counterpart.