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Low-wage jobs - stepping stones or just bad signals?

Author

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  • Mosthaf, Alexander

    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"This study investigates how the effects of low-wage employment and non-employment on wage prospects vary depending on qualification. We apply dynamic multinomial logit models with random effects and include interactions of the lagged labor market state with qualification to estimate heterogeneity in state dependence. We find that low-wage jobs are stepping stones to high-paid jobs for low qualified workers. In contrast, the chances of workers with a university degree to obtain a high-paid job are the same when being low-paid or non-employed (whereas their risk of non-employment is lower when having a low-paid job). Furthermore, our results suggest that for workers with university degree low-wage jobs are associated with negative signals." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • 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].
  • Handle: RePEc:iab:iabdpa:201111
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    File URL: http://doku.iab.de/discussionpapers/2011/dp1111.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Daniel D. Schnitzlein & Jens Stephani, 2011. "Lohnmobilität von jüngeren Geringverdienern in Deutschland," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 80(4), pages 13-30.
    2. Dutz, Mark A., 2013. "Resource reallocation and innovation : converting enterprise risks into opportunities," Policy Research Working Paper Series 6534, The World Bank.
    3. Luiz de Mello & Mark A. Dutz, 2012. "Promoting Inclusive Growth : Challenges and Policies," World Bank Publications, The World Bank, number 16948, October.

    More about this item

    Keywords

    Niedriglohn; Niedrigqualifizierte; Hochqualifizierte; Hochschulabsolventen; Nichterwerbstätigkeit; Lohnhöhe; Einkommenserwartung; berufliche Mobilität; Qualifikationsniveau; Integrierte Erwerbsbiografien;

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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