In this article, I analyse the consequences of unemployment on the re-entry occupational status and subsequent occupational status growth of different educational groups in the first years of employment in the UK. I argue that phases of unemployment mean different things for different educational groups. The sequential nature of job offers causes job searchers either to accept a job offer immediately or to wait for the next offer. Higher aspirations and higher levels of savings mean that high-educated people are more likely to wait until they are offered a job that improves their occupational position. In the case of low-educated workers, however, waiting for a better job offer might not be the best strategy, because they might never get one; in addition, the low level of unemployment benefits from previous salaries, the regime of sanctions linked to the right to receive unemployment benefits and low household incomes push them into employment. I use growth curve models and parameterize in one model both the pre-unemployment and the post-unemployment phases. Based on British Household Panel Survey (BHPS) data, the results confirm my argumentation: high-educated people gain status while low-educated entrants lose status upon re-entering the labour market after unemployment.
Abstract. Marginal employment (ME) is one of the largest forms of atypical employment in Germany. We analyse whether ME has a 'stepping stone' function for unemployed individuals, i.e., whether ME increases the subsequent probability of regular employment. We find differing treatment effects by unemployment duration. According to our results, ME increases the likelihood of regular employment within a 3-year observation period only for those who take up ME several months after beginning to receive benefits. In contrast, for those starting ME within the first months of receiving benefits, there is no effect on the probability of regular employment. Although we took several measures to minimize the impact of unobserved heterogeneity, our results can only be interpreted as causal if the conditional independence assumption holds.
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