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The interactions of workers and firms in the low-wage labor market

Author

Listed:
  • Fredrik Andersson
  • Harry J. Holzer
  • Julia I. Lane

Abstract

This paper presents an analysis of workers who persistently have low earnings in the labor market over a period of three or more years. Some of these workers manage to escape from this low-earning status over subsequent years, while many do not. Using data from the Longitudinal Employer Household Dynamics (LEHD) project at the U.S. Census Bureau, we analyze the characteristics of persons and especially of their firms and jobs that enable some to improve their earnings status over time.

Suggested Citation

  • Fredrik Andersson & Harry J. Holzer & Julia I. Lane, 2002. "The interactions of workers and firms in the low-wage labor market," Longitudinal Employer-Household Dynamics Technical Papers 2002-12, Center for Economic Studies, U.S. Census Bureau.
  • Handle: RePEc:cen:tpaper:2002-12
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    File URL: https://www2.census.gov/ces/tp/tp-2002-12.pdf
    File Function: First version, 2002
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    References listed on IDEAS

    as
    1. John M. Abowd & Robert H. Creecy & Francis Kramarz, 2002. "Computing Person and Firm Effects Using Linked Longitudinal Employer-Employee Data," Longitudinal Employer-Household Dynamics Technical Papers 2002-06, Center for Economic Studies, U.S. Census Bureau.
    2. Burgess, Simon & Lane, Julia & Stevens, David, 2000. "Job Flows, Worker Flows, and Churning," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 473-502, July.
    3. Kremer, M & Maskin, E, 1996. "Wage Inequality and Segregation by Skill," Working papers 96-23, Massachusetts Institute of Technology (MIT), Department of Economics.
    4. Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710 Elsevier.
    5. Kim B. Clark & Lawrence H. Summers, 1982. "The Dynamics of Youth Unemployment," NBER Chapters,in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 199-234 National Bureau of Economic Research, Inc.
    6. Peter Jackson & Edward Montgomery, 1986. "Layoffs, Discharges and Youth Unemployment," NBER Chapters,in: The Black Youth Employment Crisis, pages 115-143 National Bureau of Economic Research, Inc.
    7. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    8. Erica L. Groshen, 1988. "Why do wages vary among employers?," Economic Review, Federal Reserve Bank of Cleveland, issue Q I, pages 19-38.
    9. Chinhui Juhn & Kevin M. Murphy & Robert H. Topel, 1991. "Why Has the Natural Rate of Unemployment Increased over Time?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 75-142.
    10. repec:bin:bpeajo:v:26:y:1994:i:1994-3:p:177-248 is not listed on IDEAS
    11. Daniel Immergluck, 1996. "What employers want: Job prospects for less-educated workers," The Review of Black Political Economy, Springer;National Economic Association, vol. 24(4), pages 135-143, June.
    12. Royalty, Anne Beeson, 1998. "Job-to-Job and Job-to-Nonemployment Turnover by Gender and Education Level," Journal of Labor Economics, University of Chicago Press, vol. 16(2), pages 392-443, April.
    13. Harry J. Holzer & Julia I. Lane & Lars Vilhuber & Henry Jackson & George Putnam, 2001. "Escaping poverty for low-wage workers The role of employer characteristics and changes," Longitudinal Employer-Household Dynamics Technical Papers 2001-02, Center for Economic Studies, U.S. Census Bureau.
    14. Julia Lane & David Stevens, 2001. "Welfare-to-Work Outcomes: The Role of the Employer," Southern Economic Journal, Southern Economic Association, vol. 67(4), pages 1010-1021, April.
    15. Alan B. Krueger & Lawrence H. Summers, 1986. "Reflections on the Inter-Industry Wage Structure," NBER Working Papers 1968, National Bureau of Economic Research, Inc.
    16. Ronald Ferguson & Randall Filer, 1986. "Do Better Jobs Make Better Workers? Absenteeism from Work Among Inner-City Black Youths," NBER Chapters,in: The Black Youth Employment Crisis, pages 261-298 National Bureau of Economic Research, Inc.
    17. Lawrence F. Katz, 1986. "Efficiency Wage Theories: A Partial Evaluation," NBER Chapters,in: NBER Macroeconomics Annual 1986, Volume 1, pages 235-290 National Bureau of Economic Research, Inc.
    18. Richard B. Freeman & Harry J. Holzer, 1986. "The Black Youth Employment Crisis," NBER Books, National Bureau of Economic Research, Inc, number free86-1.
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    Cited by:

    1. Andersson, Fredrick & Burgess, Simon & Lane, Julia I., 2004. "Cities, matching and the productivity gains of agglomeration," LSE Research Online Documents on Economics 19939, London School of Economics and Political Science, LSE Library.
    2. Andersson, Fredrik & Burgess, Simon & Lane, Julia I., 2007. "Cities, matching and the productivity gains of agglomeration," Journal of Urban Economics, Elsevier, vol. 61(1), pages 112-128, January.
    3. Dube, Arindrajit & Lester, T. William & Eidlin, Barry, 2007. "Firm Entry and Wages: Impact of Wal-Mart Growth on Earnings Throughout the Retail Sector," Institute for Research on Labor and Employment, Working Paper Series qt22s5k4pv, Institute of Industrial Relations, UC Berkeley.

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