Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35975
Authors: 
Mosthaf, Alexander
Schank, Thorsten
Schnabel, Claus
Year of Publication: 
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

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