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Low-Wage Employment versus Unemployment: Which One Provides Better Prospects for Women?

  • Mosthaf, Alexander

    ()

    (University of Mainz)

  • Schank, Thorsten

    ()

    (University of Mainz)

  • Schnabel, Claus

    ()

    (University of Erlangen-Nuremberg)

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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4611.

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Length: 28 pages
Date of creation: Dec 2009
Publication status: published in: IZA Journal of European Labor Studies, 2014, 3:21
Handle: RePEc:iza:izadps:dp4611
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