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Low-wage employment versus unemployment: which one provides better prospects for women?

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  • Mosthaf, Alexander
  • Schank, Thorsten
  • Schnabel, Claus

Abstract

This study analyzes state dependence in low-wage employment of western German women using GSOEP data, 2000-2006. We estimate dynamic multinomial logit models with random effects and find that having a low-wage job increases the probability of being low-paid and decreases the chances of being high-paid in the future, in particular for low-paid women working part-time. However, concerning future wage prospects low-paid women are clearly better off than unemployed or inactive women. We argue that for women low-wage jobs can serve as stepping stones out of unemployment and are to be preferred to staying unemployed and waiting for a better job. -- Mit Daten des Sozio-ökonomischen Panels für 2000-2006 untersucht diese Studie die Wahrscheinlichkeit westdeutscher Frauen, in Niedriglohnbeschäftigungen zu verbleiben (state dependence). Wir schätzen dynamische multinomiale Logit-Modelle mit zufälligen Effekten und finden, dass ein Niedriglohnjob die Wahrscheinlichkeit einer Niedriglohntätigkeit in der Zukunft erhöht und die Chancen auf einen Hochlohnjob verringert. Dies gilt insbesondere für geringverdienende Frauen, die Teilzeit arbeiten. Allerdings sind die Aussichten bezüglich künftiger Löhne für Frauen in Niedriglohntätigkeiten deutlich besser als für solche, die arbeitslos oder inaktiv sind. Wir folgern daraus, dass für Frauen Niedriglohnjobs als Sprungbrett aus der Arbeitslosigkeit dienen können und dass sie eine bessere Alternative darstellen als arbeitslos zu bleiben und auf bessere Arbeitsplatzangebote zu warten.

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Bibliographic Info

Paper provided by Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics in its series Discussion Papers with number 65.

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Date of creation: 2009
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Handle: RePEc:zbw:faulre:65

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Web page: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english-version/
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Keywords: low-pay dynamics; state dependence; dynamic multinomial logit model;

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References

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  1. Cappellari, Lorenzo, 2004. "Earnings Mobility Among Italian Low Paid Workers," IZA Discussion Papers 1068, Institute for the Study of Labor (IZA).
  2. Boris Hirsch & Thorsten Schank & Claus Schnabel, 2010. "Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer-Employee Data from Germany," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 291-330, 04.
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Citations

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Cited by:
  1. Hirsch, Boris & Mueller, Steffen, 2010. "Firm leadership and the gender pay gap: Do active owners discriminate more than hired managers?," Discussion Papers 72, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  2. Hirsch, Boris & Mueller, Steffen, 2010. "Temporary agency work and the user firm's productivity: First evidence from German Panel Data," Discussion Papers 68, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  3. Hirsch, Boris & Schnabel, Claus, 2011. "Let's take bargaining models seriously: The decline in union power in Germany, 1992 - 2009," IWQW Discussion Paper Series 10/2011, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
  4. Andreas Knabe & Alexander Plum, 2012. "Low-Wage Jobs – Springboard to High-Paid Ones?," CEIS Research Paper 246, Tor Vergata University, CEIS, revised 26 Jul 2012.
  5. Stephani, Jens, 2013. "Does it matter where you work? : employer characteristics and the wage growth of low-wage workers and higher-wage workers," IAB Discussion Paper 201304, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  6. Stephani, Jens, 2012. "Wage growth and career patterns of German low-wage workers," IAB Discussion Paper 201201, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  7. Mosthaf, Alexander, 2011. "Low-wage jobs - stepping stones or just bad signals?," IAB Discussion Paper 201111, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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