Low-wage jobs
Knabe, Andreas ;  Plum, Alexander ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleLow-wage jobs
Subtitlestepping stone or poverty trap?
AuthorKnabe, Andreas
AuthorPlum, Alexander
EditorUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages27 S.
Series ; 2010,28 : Economics
Keywordslow pay dynamics; unemployment dynamics; dynamic random effects models; state dependence
Classification (DDC)331 Labor economics
AbstractWe examine whether low-paid jobs have an effect on the occupational advancement
probability of unemployed persons to obtain better-paid jobs in the future (stepping-stone
effect). We make use of data from the German Socio-Economic Panel (SOEP) and apply a
dynamic random-effects probit model. Our results suggest that low-wage jobs can act as stepping
stones to better-paid work. The improvement of the chance to obtain a high-wage job by
accepting low-paid work is particularly large for less-skilled persons and for individuals with
longer unemployment experiences. Low-paid work is less beneficial if the job is also associated
with a low social status.
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FU DepartmentDepartment Business and Economics
Other affiliation(s)Arbeitsmarkt- und Sozialpolitik
Year of publication2010
Type of documentBook
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Created at2010-12-06 : 01:51:34
Last changed2016-01-05 : 02:38:21
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000008210