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Dead-End Jobs Or Stepping Stones? The Long-Run Consequences Of Early Industry And Occupation

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  • Bosley, Stacie A.

Abstract

Dead-end jobs can be defined as a line of work in one's early work history that leads to lower long-run wages. This study shows how early lines of work predict long-run worker wages and finds that there are significant differences in this relationship based on the skill level of the worker. In general, service-producing lines of work appear to penalize long-run wages, especially for low-skilled workers. Low-skilled workers in retail food/foodservice lines of work rank about in the middle of the spectrum between dead-end jobs and stepping stones. Long-run wage potential is better in retail food/foodservice than in manufacturing/operative jobs. On the other hand, early experience in retail food/foodservice leads to lower long-run wages, all else equal, compared to early experience in a professional services industry (other than health) and a non-business professional occupation. Overall, this research provides evidence that early line of work matters to a worker's long run wages at all skill levels; there is little difference between men and women. These results are based on analyzing data from the National Longitudinal Survey of Youth, 1979.

Suggested Citation

  • Bosley, Stacie A., 2004. "Dead-End Jobs Or Stepping Stones? The Long-Run Consequences Of Early Industry And Occupation," Working Papers 14301, University of Minnesota, The Food Industry Center.
  • Handle: RePEc:ags:umrfwp:14301
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    File URL: http://ageconsearch.umn.edu/record/14301/files/tr04-03.pdf
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    References listed on IDEAS

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    1. Rosella Gardecki & David Neumark, 1998. "Order from Chaos? The Effects of Early Labor Market Experiences on Adult Labor Market Outcomes," ILR Review, Cornell University, ILR School, vol. 51(2), pages 299-322, January.
    2. Timothy J. Bartik, 1997. "Short-Term Employment Persistence for Welfare Recipients: The "Effects" of Wages, Industry, Occupation and Firm," Upjohn Working Papers and Journal Articles 97-46, W.E. Upjohn Institute for Employment Research.
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    Keywords

    Labor and Human Capital;

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