What explains whether people on low pay get stuck there or not? The research by: Kitty Ussher & Ashwin Kumar

1. Pay progression: understanding
the barriers for the lowest paid
THE RESEARCH
Kitty Ussher & Ashwin Kumar

2. The question
What explains whether people on low pay get
stuck there or not?
Previous research: working lives
Our contribution: add in wider household
circumstances and attitudes
• Define low pay as up to 20 % above minimum
wage
• Adopt Resolution Foundation typology: if you
start in low pay, over 10 years are you stuck, do
you cycle, or have you escaped?

3. What we did
• New analysis of the Understanding Society
ONS database to explore wider household
characteristics: present results descriptively,
as regression analysis and then cluster analysis
• Focus groups to explore barriers: 4 groups
over the summer of people on low wages in
Sheffield and Croydon, split by age and
gender, mixed by industry sector.

4. The results: regression analysis
Hypothetical person 1 Hypothetical person 2 % point change
in probability
Age 35 Age 45 +10
Man Woman +47
Not part time Part time for at least 2 out of 10 years +16
Not small workplace Small workplace for at least 2 out of 10 yrs +50
Female has kids Female 3 years of having kids aged 0 to 4 +5
Female has kids Female each year of being a lone parent +9
Neither satisfied or
dissatisfied
Very satisfied +16
Neither satisfied or
dissatisfied
Very dissatisfied +16
No health conditions Each level of health condition from 1 to 4 +10
Probability of being stuck in low pay – selected highlights (see p22)

5. The results: cluster analysis
Group name Prospects Key characteristics Proportion of low paid
Entry-level strivers Below average chance of being
stuck
Up to mid 20s
Either male or female
Full time, GCSE/A-level
32%
Young mums Slightly higher than average
chance of being stuck
20s-mid 30s
Mostly female
Dependent children for 10 years
22%
Low skill women, part time in
public sector
Likely to escape 30s-40s
Almost all female
Dependent children for 10 years
Most part time
Public sector
9%
Low skill women juggling health
and families
Average chance of being stuck Mid-30s – mid 40s
Higher chance of poor health
Dependent children
Low wage industry
13%
Low skilled older women not
seeking advancement
High chance of being stuck Mid 40s to mid 50s
Mostly female
Unlikely to have dependent children
Part time
Don’t want a better job
24%
See p5

6. The results: focus groups
Many re dissatisfied with pay but OK with other aspects of
their working lives
The least difficult way to take home more money is to work
more hours/do more jobs (not an option for women)
Barrier 1: Economic climate – expendable, fear of losing part
time status
Barrier 2: Employer-rated factors - ‘face doesn’t fit’; fear of
exploitation if offer more capacity; treated like a number not a
person (large employers); don’t know how to signal ambition
Barrier 3: Confidence – lack of knowledge about how to do
senior job; fear of change
Barrier 4: Costs outweigh benefits: “you lose your life”

7. Discussion
• Government: more information on
progression paths; more free childcare; sector-
wide elementary-level career paths
• Employers: part-time progression routes;
watch out for people having to leave; provide
ways to signal ambition; job redesign to
ensure business case for career paths.