Low-wage jobs - stepping stones or just bad signals?

Arbeitspapier

This study investigates how the effects of low-wage employment and non-employment on wage prospects vary depending on qualification. We apply dynamic multinomial logit models with random effects and include interactions of the lagged labor market state with qualification to estimate heterogeneity in state dependence. We find that low-wage jobs are stepping stones to high-paid jobs for low qualified workers. In contrast, the chances of workers with a university degree to obtain a high-paid job are the same when being low-paid or non-employed (whereas their risk of non-employment is lower when having a low-paid job). Furthermore, our results suggest that for workers with university degree low-wage jobs are associated with negative signals.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IAB-Discussion Paper ; No. 11/2011

Classification and Topics

• Classification: Wirtschaft ; Wages, Compensation, and Labor Costs: General ; Mobility, Unemployment, Vacancies, and Immigrant Workers: General ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
• Subject: low-pay dynamics ; state dependence ; dynamic multinomial logit model ; partial effect ; nonlinear models ; interaction term ; unobserved heterogeneity ; Niedriglohn ; Erwerbstätigkeit ; Qualifikation ; Erwerbsverlauf ; Arbeitsmarktforschung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mosthaf, Alexander
• Event: Veröffentlichung
• (who): Institut für Arbeitsmarkt- und Berufsforschung (IAB)
• (where): Nürnberg
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/57467
• Last update: 10.03.2025, 11:44 AM CET