Artikel

Low-wage employment versus unemployment: Which one provides better prospects for women?

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.

Language
Englisch

Bibliographic citation
Journal: IZA Journal of European Labor Studies ; ISSN: 2193-9012 ; Volume: 3 ; Year: 2014 ; Issue: 21 ; Pages: 1-17 ; Heidelberg: Springer

Classification
Wirtschaft
Wages, Compensation, and Labor Costs: General
Mobility, Unemployment, Vacancies, and Immigrant Workers: General
Multiple or Simultaneous Equation Models: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
Subject
Low-pay dynamics
State dependence
Dynamic multinomial logit model

Event
Geistige Schöpfung
(who)
Mosthaf, Alexander
Schank, Thorsten
Schnabel, Claus
Event
Veröffentlichung
(who)
Springer
(where)
Heidelberg
(when)
2014

DOI
doi:10.1186/2193-9012-3-21
Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Mosthaf, Alexander
  • Schank, Thorsten
  • Schnabel, Claus
  • Springer

Time of origin

  • 2014

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