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

28 Pages Posted: 8 Dec 2009

See all articles by Alexander Mosthaf

Alexander Mosthaf

Johannes Gutenberg University Mainz

Thorsten Schank

University of Erlangen-Nuremberg

Claus Schnabel

University of Erlangen-Nuremberg; IZA Institute of Labor Economics

Abstract

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.

Keywords: low-pay dynamics, state dependence, dynamic multinomial logit model

JEL Classification: J30, J60, C33

Suggested Citation

Mosthaf, Alexander and Schank, Thorsten and Schnabel, Claus, Low-Wage Employment Versus Unemployment: Which One Provides Better Prospects for Women?. IZA Discussion Paper No. 4611, Available at SSRN: https://ssrn.com/abstract=1519247

Alexander Mosthaf (Contact Author)

Johannes Gutenberg University Mainz

Thorsten Schank

University of Erlangen-Nuremberg ( email )

Schloßplatz 4
Erlangen, DE Bavaria 91054
Germany

Claus Schnabel

University of Erlangen-Nuremberg ( email )

Institut für Wirtschaftsforschung
Lange Gasse 20
D-90403 Nuernberg
Germany
+49 911 5302 330 (Phone)
+49 911 5302 721 (Fax)

HOME PAGE: http://https://www.arbeitsmarkt.rw.fau.de/english-version/staff/prof-dr-claus-schnabel/

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
50
Abstract Views
552
PlumX Metrics