Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/43876
Authors: 
Knabe, Andreas
Plum, Alexander
Year of Publication: 
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

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