Low-Wage Employment Versus Unemployment: Which One Provides Better Prospects for Women?
28 Pages Posted: 8 Dec 2009
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: Suggested Citation