Arbeitspapier

The British Low-Wage Sector and the Employment Prospects of the Unemployed

Are low wages a way for the unemployed to switch to higher-paying jobs? Using data from the British Household Panel Survey (BHPS), the labour market dynamics of unemployed, low-paid, and higher-paid employed men are analysed. Moreover, the respective (un)employment duration and occupational skill level are accounted for. Results show that in general low wages significantly reduce the risk of future unemployment and increase the chances of ascending the salary ladder, especially in the case of long-term unemployment (>360 days). Furthermore, the occupational skill level has a substantial influence on the upward mobility of low-paid jobs: individuals working in the initial period in a low-paid and higher-skilled occupation have on average an 11 percentage points higher probability of entering higher pay compared to when working in a low-paid and low-skilled occupation.

Sprache
Englisch

Erschienen in
Series: Economics Working Paper Series ; No. 2018/08

Klassifikation
Wirtschaft
Unemployment: Models, Duration, Incidence, and Job Search
Job, Occupational, and Intergenerational Mobility; Promotion
Wage Level and Structure; Wage Differentials
Thema
unemployment dynamics
low-pay dynamics
intial conditions problem
random-effects probit models
maximum simulated likelihood

Ereignis
Geistige Schöpfung
(wer)
Plum, Alexander
Ereignis
Veröffentlichung
(wer)
Auckland University of Technology (AUT), Faculty of Business, Economics and Law
(wo)
Auckland
(wann)
2018

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Plum, Alexander
  • Auckland University of Technology (AUT), Faculty of Business, Economics and Law

Entstanden

  • 2018

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