2014
DOI: 10.1186/2193-9012-3-21
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Low-wage employment versus unemployment: Which one provides better prospects for women?

Abstract: Using German SOEP data, 1999SOEP data, -2009, this study analyzes state dependence in low-wage employment of western German women, where we distinguish between full-time and part-time working. We estimate a dynamic multinomial logit model with random effects and find that having a low-wage job -compared to having a high-wage job -ceteris paribus decreases the probability of being high-paid in the future. This negative effect is significantly larger for part-time jobs than for full-time jobs. We find mixed ev… Show more

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Cited by 22 publications
(44 citation statements)
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References 33 publications
(33 reference statements)
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“…This negative signal should be particularly pronounced for individuals with higher levels of qualifications, reducing their chances of getting a job that corresponds to their formal qualification. Similarly, accumulation of human capital in low-quality jobs is often limited and is probably not much higher than during unemployment, particularly when compared to situations where unemployed individuals receive training measures from the employment agency [4]. For some (qualified) workers, low-pay employment may even be associated with a deterioration of their human capital.…”
Section: Discussion Of Pros and Consmentioning
confidence: 99%
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“…This negative signal should be particularly pronounced for individuals with higher levels of qualifications, reducing their chances of getting a job that corresponds to their formal qualification. Similarly, accumulation of human capital in low-quality jobs is often limited and is probably not much higher than during unemployment, particularly when compared to situations where unemployed individuals receive training measures from the employment agency [4]. For some (qualified) workers, low-pay employment may even be associated with a deterioration of their human capital.…”
Section: Discussion Of Pros and Consmentioning
confidence: 99%
“…With respect to future wage prospects, however, low-paid women are found to be significantly better off than unemployed or inactive women. The authors argue that, for women, low-wage jobs can help lead them out of unemployment and that these jobs should be prioritized over remaining unemployed while waiting for a better job [4]. An Australian study provides corroborating evidence that low-paid employment is always preferable to unemployment for women [12].…”
Section: Stepping Stone and Scarring Effects Of Low-paid Jobsmentioning
confidence: 96%
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“…Moghadam and Rijckeghem has done research on 1995 which shows there are significant relationship between low wage and unemployment in Belgium. Another research has been done in Germany by Mosthaf and Schnabel (2009) and it shows no relationship between unemployment and low wage. Our findings also support their studies as there is a significant relationship between low wages towards unemployment.…”
Section: Low Wagesmentioning
confidence: 96%
“…13 This type of model has been used by others, including Mosthaf et al (2009) and Mosthaf (forthcoming). We follow these two papers and model the latent probability of an individual to be in the employment state (higher-wage employment, low-wage employment, not working) in the year as:…”
mentioning
confidence: 99%