Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/125591
Authors: 
Mosthaf, Alexander
Schank, Thorsten
Schnabel, Claus
Year of Publication: 
2014
Citation: 
[Journal:] IZA Journal of European Labor Studies [ISSN:] 2193-9012 [Publisher:] Springer [Place:] Heidelberg [Volume:] 3 [Year:] 2014 [Issue:] 21 [Pages:] 1-17
Abstract: 
Using German SOEP data, 1999 - 2009, this study analyzes state dependence in low-wage employment of western German women, where we distinguish between full-time and part-time working. We estimate a dynamic multinomial logit model with random effects and find that having a low-wage job - compared to having a high-wage job - ceteris paribus decreases the probability of being high-paid in the future. This negative effect is significantly larger for part-time jobs than for full-time jobs. We find mixed evidence for a low-pay-no-pay cycle: compared to being high-paid, having a low-paid job increases the risk of being unemployed in the next period only for part-time workers. 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
C35
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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