Can low-wage workers find better jobs?

Arbeitspapier

There is growing concern over rising economic inequality, the decline of the middle class, and a polarization of the U.S. workforce. This study examines the extent to which low-wage workers in the United States transition to better jobs, and explores the factors associated with such a move up the job ladder. Using data covering the expansion following the Great Recession (2011-17) and focusing on short-term labor market transitions, we find that around 70 percent of low-wage workers stayed in the same job, 11 percent exited the labor force, 7 percent became unemployed, and 6 percent switched to a different low-wage job. Troublingly, just slightly more than 5 percent of low-wage workers found a better job within a 12-month period. Study results point to the importance of educational attainment in helping low-wage workers move up the job ladder.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Staff Report ; No. 846

Classification and Topics

• Classification: Wirtschaft ; Labor Economics: General ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Geographic Labor Mobility; Immigrant Workers ; Job, Occupational, and Intergenerational Mobility; Promotion
• Subject: low-wage jobs ; career ladder ; labor market dynamics

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gabe, Todd M. ; Abel, Jaison R. ; Florida, Richard L.
• Event: Veröffentlichung
• (who): Federal Reserve Bank of New York
• (where): New York, NY
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/210698
• Last update: 10.03.2025, 11:41 AM CET