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Within- and between-firm mobility in the low-wage labour market

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  • Bolvig, Iben

    ()
    (Department of Economics, Aarhus School of Business)

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    Abstract

    Wage mobility among low wage earners has previously been focussing on the characteristics of the low wage earners, whereas the role of the firm has been neglected. The purpose of this study is to focus on the characteristics of the firms when analysing variation in wage mobility. The empirical findings confirm that the characteristics of the employing firm indeed matter for low-wage employees´ likelihood of escaping a low-wage job. Especially does the employing firm affect the destination state – i.e. where a low-wage worker goes after having finished a low-wage job, and the findings enable me to identify three types of firms: career firms with high within-firm upward wage mobility, stepping-stone firms with high between-firm upward wage mobility and dead-end firms with low upward wage mobility.

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    File URL: http://www.hha.dk/nat/wper/04-11_ibenb.pdf
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    Bibliographic Info

    Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 04-11.

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    Length: 25 pages
    Date of creation: 10 Dec 2004
    Date of revision:
    Handle: RePEc:hhs:aareco:2004_011

    Note: Also available as chapter in: Job Quality and Employer Behaviour / Ed.by Stephen Bazen, Claudio Lucifora and Wiemer Salverda. Palgrave 2005
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    Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
    Phone: +45 89 486396
    Fax: +45 8615 5175
    Web page: http://www.asb.dk/departments/nat.aspx
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    Related research

    Keywords: Low wage earners; wage mobility; firm behaviour; employer-employee relations;

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    1. Cockx, Bart & Van der Linden, Bruno & Karaa, Adel, 1996. "Active labour market policies and job tenure," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1996026, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Ralph E. Smith & Bruce Vavrichek, 1992. "The wage mobility of minimum wage workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(1), pages 82-88, October.
    3. Stewart, M.B. & Swaffield, J.K., 1997. "Low Pay Dynamics and Transition Probabilities," The Warwick Economics Research Paper Series (TWERPS) 495, University of Warwick, Department of Economics.
    4. Fredrik Andersson & Harry J. Holzer & Julia I. Lane, 2003. "Worker Advancement in the Low-Wage Labor Market: The Importance of Good Jobs," Longitudinal Employer-Household Dynamics Technical Papers 2003-08, Center for Economic Studies, U.S. Census Bureau.
    5. Wachtel, Howard M & Betsey, Charles, 1972. "Employment at Low Wages," The Review of Economics and Statistics, MIT Press, vol. 54(2), pages 121-29, May.
    6. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
    7. Maury Gittleman & Mary Joyce, 1999. "Have family income mobility patterns changed?," Demography, Springer, vol. 36(3), pages 299-314, August.
    8. Stephen Bazen, 2001. "Youth and Earnings Mobility: the Case of France in a comparative Framework," LoWER Working Papers wp3, AIAS, Amsterdam Institute for Advanced Labour Studies.
    9. Cappellari, Lorenzo, 2002. " Do the 'Working Poor' Stay Poor? An Analysis of Low Pay Transitions in Italy," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(2), pages 87-110, May.
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    Cited by:
    1. Tor Eriksson & Niels Westergaard-Nielsen, 2007. "Wage and Labor Mobility in Denmark, 1980-2000," NBER Working Papers 13064, National Bureau of Economic Research, Inc.
    2. Thorsten Schank & Claus Schnabel & Jens Stephani, 2009. "Geringverdiener: Wem und wie gelingt der Aufstieg?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 229(5), pages 584-614, October.

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