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The Conversation
The Conversation
Alexander Plum, Senior Research Fellow in Applied Labour Economics, Auckland University of Technology

For some workers, low-paying jobs might be more of a dead end than a stepping stone

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The most recent rise in Aotearoa New Zealand’s minimum wage has again put the spotlight on low-wage jobs and the established belief that low wages are a starting point for workers who are quickly able to transition into higher-paid employment. But our research found the situation is not so straightforward. For older New Zealanders, possible options for finding their way out of low-wage work are quite limited.

In our research, we explored whether low-wage workers can easily transition to better-paying opportunities. We wanted to examine whether low-pay creates a lock-in effect, or whether workers in New Zealand have sufficient scope to climb up the salary ladder.

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