Hielke Buddelmeyer () (Institute of Applied Economic and Social Research, The University of Melbourne) Wang-Sheng Lee () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne) Mark Wooden () (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)
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This paper uses longitudinal data from the Household, Income and Labour Dynamics in Australia (or HILDA) Survey to examine the extent to which the relatively high rates of transition from low-paid employment into unemployment are the result of disadvantageous personal characteristics or are instead a function of low-paid work itself. Dynamic random effects probit models of the likelihood of unemployment are estimated. After controlling for unobserved heterogeneity and initial conditions, we find that, relative to high-paid employment, low-paid employment is associated with a higher risk of unemployment, but this effect is only significant among women. We also find only weak evidence that low-wage employment is a conduit for repeat unemployment.
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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number
wp2009n06.
Length: 35 pages Date of creation: Mar 2009 Date of revision: Handle: RePEc:iae:iaewps:wp2009n06
Contact details of provider: Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia Phone: +61 3 8344 2100 Fax: +61 3 8344 2111 Email: Web page: http://www.melbourneinstitute.com/ More information through EDIRC
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Stewart, Mark B & Swaffield, Joanna K, 1999.
"Low Pay Dynamics and Transition Probabilities,"
Economica,
London School of Economics and Political Science, vol. 66(261), pages 23-42, February.
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