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Escaping Low Earnings: The Role of Employer Characteristics and Changes

Author

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  • Harry J. Holzer
  • Julia I. Lane
  • Lars Vilhuber

Abstract

Using a unique dataset based on individual Unemployment Insurance wage records for Illinois in the 1990s that are matched to other Census data, the authors analyze the extent to which escape from or entry into low earnings among adult workers was associated with changes in their employers and firm characteristics. The results show considerable mobility into and out of low earnings status, even for adults. They indicate that job changes were an important part of the process by which workers escaped or entered low-wage status, and that changes in employer characteristics help to account for these job changes. Matches between personal and firm characteristics also contributed to observed earnings outcomes.

Suggested Citation

  • Harry J. Holzer & Julia I. Lane & Lars Vilhuber, 2004. "Escaping Low Earnings: The Role of Employer Characteristics and Changes," ILR Review, Cornell University, ILR School, vol. 57(4), pages 560-578, July.
    • Handle: RePEc:sae:ilrrev:v:57:y:2004:i:4:p:560-578
    DOI: 10.1177/001979390405700405
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    References listed on IDEAS

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    1. Julia I. Lane & John C. Haltiwanger & James Spletzer, 1999. "Productivity Differences across Employers: The Roles of Employer Size, Age, and Human Capital," American Economic Review, American Economic Association, vol. 89(2), pages 94-98, May.
    2. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    3. John M. Abowd & Robert H. Creecy & Francis Kramarz, 2002. "Computing Person and Firm Effects Using Linked Longitudinal Employer-Employee Data," Longitudinal Employer-Household Dynamics Technical Papers 2002-06, Center for Economic Studies, U.S. Census Bureau.
    4. repec:eee:labchp:v:2:y:1986:i:c:p:789-848 is not listed on IDEAS
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    Cited by:

    1. Rasmus Lentz & Suphanit Piyapromdee & Jean-Marc Robin, 2022. "The Anatomy of Sorting - Evidence from Danish Data," SciencePo Working papers Main hal-03869383, HAL.
    2. Rasmus Lentz & Suphanit Piyapromdee & Jean-Marc Robin, 2018. "On Worker and Firm Heterogeneity in Wages and Employment Mobility: Evidence from Danish Register Data," PIER Discussion Papers 91, Puey Ungphakorn Institute for Economic Research.
    3. Dagney Faulk & Michael J Hicks, 2016. "The impact of bus transit on employee turnover: Evidence from quasi-experimental samples," Urban Studies, Urban Studies Journal Limited, vol. 53(9), pages 1836-1852, July.
    4. John J. Abowd & John Haltiwanger & Julia Lane, 2004. "Integrated Longitudinal Employer-Employee Data for the United States," American Economic Review, American Economic Association, vol. 94(2), pages 224-229, May.
    5. Landivar, Liana Christin & Beckhusen, Julia, 2019. "Racial Disparities in Women's Mobility out of Retail and Service Occupations," SocArXiv ykufd, Center for Open Science.
    6. Niki Dickerson Lockette & William E. Spriggs, 2016. "Wage Dynamics and Racial and Ethnic Occupational Segregation Among Less-Educated Men in Metropolitan Labor Markets," The Review of Black Political Economy, Springer;National Economic Association, vol. 43(1), pages 35-56, March.
    7. Francisco Silva & José Vieira & António Pimenta & João Teixeira, 2018. "Duration of low-wage employment: a study based on a survival model," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(2), pages 286-299, February.
    8. Rasmus Lentz & Suphanit Piyapromdee & Jean-Marc Robin, 2022. "The Anatomy of Sorting - Evidence from Danish Data," Working Papers hal-03869383, HAL.
    9. Tim Maloney, 2007. "Health status and labour force status of older working-age Australian men," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 10(4), pages 295-318.
    10. Marchand, J. & Smeeding, T., 2016. "Poverty and Aging," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 905-950, Elsevier.
      • Marchand, Joseph & Smeeding, Timothy, 2016. "Poverty and Aging," Working Papers 2016-11, University of Alberta, Department of Economics, revised 20 Nov 2016.
    11. Rasmus Lentz & Suphanit Piyapromdee & Jean‐Marc Robin, 2023. "The Anatomy of Sorting—Evidence From Danish Data," Econometrica, Econometric Society, vol. 91(6), pages 2409-2455, November.
    12. Pollio, Chiara & Landini, Fabio & Prodi, Elena & Arrighetti, Alessandro, 2023. "Does Temporary Employment undermine the Quality of Permanent Jobs?," GLO Discussion Paper Series 1273, Global Labor Organization (GLO).
    13. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2004. "Wage gains among job changers across the business cycle: insight from state administrative data," FRB Atlanta Working Paper 2004-19, Federal Reserve Bank of Atlanta.

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