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Title:Low-wage employment versus unemployment: which one provides better prospects for women? PDF Logo
Authors:Mosthaf, Alexander
Schank, Thorsten
Schnabel, Claus
Issue Date:2009
Series/Report no.:IZA Discussion Papers 4611
Abstract:This study analyzes state dependence in low-wage employment of western German women using GSOEP data, 2000-2006. We estimate dynamic multinomial logit models with random effects and find that having a low-wage job increases the probability of being low-paid and decreases the chances of being high-paid in the future, in particular for low-paid women working part-time. However, concerning future wage prospects low-paid women are clearly better off than unemployed or inactive women. We argue that for women low-wage jobs can serve as stepping stones out of unemployment and are to be preferred to staying unemployed and waiting for a better job.
Subjects:Low-pay dynamics
state dependence
dynamic multinomial logit model
JEL:J30
J60
C33
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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