In the social policy debate, fundamentally different ideas prevail about the interlinkages between such key variables as employment, low pay, social transfers and poverty. This paper presents basic empirical evidence on the validity of these ideas and the policy prescriptions that follow from...

Low pay is conventionally measured in terms of the gross earnings of the individual, related to benchmarks derived from the distribution of earnings such as half or two-thirds of the median. Poverty status, on the other hand, is usually assessed on the basis of the disposable income of the...