Low-wage jobs: Stepping stone or poverty trap?

Arbeitspapier

We examine whether low-paid jobs have an effect on the occupational advancement probability of unemployed persons to obtain better-paid jobs in the future (stepping-stone effect). We make use of data from the German Socio-Economic Panel (SOEP) and apply a dynamic random-effects probit model. Our results suggest that low-wage jobs can acts stepping stones to better-paid work. The improvement of the chance to obtain a high-wage job by accepting low-paid work is particularly large for less-skilled persons and for individuals with longer unemployment experiences. Low-paid work is less beneficial if the job is also associated with a low social status.

Object Details

• ISBN: 978-3-941240-40-7
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionsbeiträge ; No. 2010/28

Classification and Topics

• Classification: Wirtschaft ; Unemployment: Models, Duration, Incidence, and Job Search ; Job, Occupational, and Intergenerational Mobility; Promotion ; Wage Level and Structure; Wage Differentials
• Subject: low pay dynamics ; unemployment dynamics ; dynamic random effects models ; state dependence ; Niedriglohn ; Berufliche Integration ; Erwerbsverlauf ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Knabe, Andreas ; Plum, Alexander
• Event: Veröffentlichung
• (who): Freie Universität Berlin, Fachbereich Wirtschaftswissenschaft
• (where): Berlin
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/43876
• Last update: 10.03.2025, 11:41 AM CET