Low-Paid Employment and Unemployment Dynamics in Australia

21 Pages Posted: 1 Mar 2010

See all articles by Hielke Buddelmeyer

Hielke Buddelmeyer

Melbourne Institute; IZA Institute of Labor Economics

Wang-Sheng Lee

Deakin University

Mark Wooden

University of Melbourne - Melbourne Institute of Applied Economic and Social Research; IZA Institute of Labor Economics

Abstract

This article uses longitudinal data from the Household, Income and Labour Dynamics in Australia (or HILDA) Survey to examine the extent to which the relatively high rates of transition from low-paid employment into unemployment are the result of disadvantageous personal characteristics or are instead a function of low-paid work itself. Dynamic random effects probit models of the likelihood of unemployment are estimated. After controlling for unobserved heterogeneity and initial conditions, we find that, relative to high-paid employment, low-paid employment is associated with a higher risk of unemployment, but this effect is only significant among women. We also find only weak evidence that low-paid employment is a conduit for repeat unemployment.

Suggested Citation

Buddelmeyer, Hielke and Lee, Wang-Sheng and Wooden, Mark, Low-Paid Employment and Unemployment Dynamics in Australia. Economic Record, Vol. 86, Issue 272, pp. 28-48, March 2010. Available at SSRN: https://ssrn.com/abstract=1560148 or http://dx.doi.org/10.1111/j.1475-4932.2009.00595.x

Hielke Buddelmeyer (Contact Author)

Melbourne Institute ( email )

161 Barry Street
Level 7
Parkville, Victoria 3010
Australia
+61383442091 (Phone)

HOME PAGE: http://www.melbourneinstitute.com

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Wang-Sheng Lee

Deakin University ( email )

Burwood, Victoria 3215
Australia
+61392446669 (Phone)

HOME PAGE: http://www.deakin.edu.au/buslaw/aef/staff/profiles/lee.php

Mark Wooden

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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