Increasingly, the governments of virtually all industrialized countries are confronted with persistent problems of unemployment and low pay for those with little formal education and few skills. This is a focused set of studies highlighting several important findings in this area. It considers policy measures in taxation, benefits and employer subsidies aimed at the low-skilled and illustrates the limitations of short-term solutions. The policy debate is extended to encompass the role of product demand related to low-paid, low-skilled work and to the functioning of the labour market. In particular, the study investigates the role of job satisfaction and turn-over in two major low-paying sectors - the retail trade and the hotel industry.