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http://hdl.handle.net/10419/43876
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| Title: | | Low-wage jobs: Stepping stone or poverty trap?  |
| Authors: | | Knabe, Andreas Plum, Alexander |
| Issue Date: | | 2010 |
| Series/Report no.: | | School of Business & Economics Discussion Paper: Economics 2010/28 |
| Abstract: | | We 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 acts 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. |
| Subjects: | | low pay dynamics unemployment dynamics dynamic random effects models state dependence |
| JEL: | | J64 J62 J31 |
| ISBN: | | 978-3-941240-40-7 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin
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