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Low-wage employment versus unemployment: which one provides better prospects for women?

  • Mosthaf, Alexander
  • Schank, Thorsten
  • Schnabel, Claus

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 Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics in its series FAU Discussion Papers in Economics with number 14/2009.

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Date of creation: 2009
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Handle: RePEc:zbw:iwqwdp:142009
Contact details of provider: Web page: https://www.iwf.rw.fau.de/

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