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The Inter-related Dynamics of Unemployment and Low-wage Employment

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  • Stewart, Mark B.

Abstract

This paper examines the extent of state dependence in unemployment and the role played in this by intervening low-wage employment. A range of dynamic random and fixed effects estimators are compared. Low-wage employment is found to have almost as large an adverse effect as unemployment on future prospects and the difference in their effects is found to be insignificant. Evidence is presented that low-wage jobs act as the main conduit for repeat unemployment and considerably increases its probability. Obtaining a higherwage job reduces the increased risk of repeat unemployment to insignificance.

Suggested Citation

  • Stewart, Mark B., 2005. "The Inter-related Dynamics of Unemployment and Low-wage Employment," Economic Research Papers 269634, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:269634
    DOI: 10.22004/ag.econ.269634
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    More about this item

    Keywords

    Labor and Human Capital; Research Methods/ Statistical Methods;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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