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http://hdl.handle.net/10419/29655
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| Title: | | Low-wage careers: are there dead-end firms and dead-end jobs?  |
| Authors: | | Mosthaf, Alexander Schnabel, Claus Stephani, Jens |
| Issue Date: | | 2009 |
| Series/Report no.: | | Diskussionspapiere // Universität Erlangen-Nürnberg, Lehrstuhl für Arbeitsmarkt- und Regionalpolitik 66 |
| Abstract: | | Using representative linked employer-employee data of the German Federal Employment Agency, this paper shows that just one out of seven full-time employees who earned low wages (i.e. less than two-thirds of the median wage) in 1998/99 was able to earn wages above the low-wage threshold in 2003. Bivariate probit estimations with endogenous selection indicate that upward wage mobility is higher for younger and better qualified low-wage earners, whereas women are substantially less successful. We show that the characteristics of the employing firm also matter for low-wage earners' probability of escaping low-paid work. In particular small plants and plants with a high share of low-wage earners often seem to be dead ends for low-wage earners. The likelihood of leaving the low-wage sector is also low when staying in unskilled and skilled service occupations and in unskilled commercial and administrational occupations. Consequently, leaving these dead-end plants and occupations appears to be an important instrument for achieving wages above the low-wage threshold. |
| Subjects: | | low-wage employment wage mobility Germany |
| JEL: | | J30 J60 |
| Appears in Collections: | | Diskussionspapiere, Lst. f. Arbeitsmarkt- u. Regionalpolitik, FAU Erlangen-Nürnberg
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