Low-Wage Jobs – Springboard to High-Paid Ones?

Knabe, Andreas; Plum, Alexander

doi:10.2139/ssrn.2117962

Cited by 9 publications

(19 citation statements)

References 27 publications

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“…In a dynamic probit model framework and using the German SOEP, Knabe and Plum (2013) examine the stepping stone effect of low pay relative to unemployment by including both lagged unemployment and lagged low pay as the explanatory variables. They find that low pay can act as a stepping stone to better paid employment, particularly for those who do not have a college degree, who have been unemployed more often in the past and whose low paid job carries relatively high social status.…”

Section: Literature Reviewmentioning

confidence: 99%

Low Paid Employment in Britain: Estimating State‐Dependence and Stepping Stone Effects

2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S Low Paid Employment inIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Using 18 waves of the British Household Panel Study, this paper examines state dependence and stepping stone effects of low pay. A distinguishing feature is that five types of transition-not in the labour force (NILF), unemployment, self-employment, low pay and higher pay are modelled separately. The results show that both state dependence and stepping stone effects of low pay are present. However, there is no evidence to support a low-pay no-pay cycle. The introduction of the national minimum wage does not appear to have affected state-dependence and stepping stone effects of low pay. JEL Classification:J24, J31, I21

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Section: Literature Reviewmentioning

confidence: 99%

Low Paid Employment in Britain: Estimating State‐Dependence and Stepping Stone Effects

2017

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“…Mosthaf et al (2009) investigate labour market dynamics of western German women and come to the conclusion that future labour market success is better for low-paid women than for unemployed and inactive women, especially when having full-time jobs. Knabe and Plum (2013) study transitions between low-wage employment, high-wage employment and unemployment looking at German women and men and find that taking up a low-paid job is advisable for less-skilled persons and for those with longer unemployment durations. 3 How does state dependence vary with qualification?…”

Section: Literature and Theoretical Backgroundmentioning

confidence: 99%

“…This study is closely related to our study. However,Knabe and Plum (2013) use a bivariate probit model with random-effects whereas we use a multinomial logit model with random effects. In addition, they use the German SOEP, whereas we use a German administrative data set.…”

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confidence: 99%

Do Scarring Effects of Low‐Wage Employment and Non‐Employment Differ BETWEEN Levels of Qualification?

Mosthaf¹

2014

Scottish J Political Eco

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This study investigates how the effects of low‐wage employment and non‐employment on wage prospects vary depending on qualification. Based on theories on signalling effects, human capital and job search, we discuss why there may be heterogeneity in state dependence in both labour market states. We find that episodes of low‐wage employment incur a significantly lower risk of future non‐employment than episodes of non‐employment for low‐qualified workers. In contrast, for workers with a middle or high level of qualification the risk of non‐employment is not significantly different when being low‐paid instead of not employed.

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“…This springboard effect has been confirmed for people (men more than women) with low or intermediate levels of education, for those who had experienced longer periods of unemployment, and in cases of low-wage jobs associated with a relatively high social status. In contrast, high-skilled individuals with college degrees are more likely to hurt than improve their long-term labour market prospects by taking employment in the low-wage sector (Knabe and Plum, 2013; Mosthaf, 2014). The loss of social standing that is likely to become irreversible cannot but diminish the jobseeker's autonomy in a lifetime perspective, as ‘access to a social status predetermines her life course and represents a ‘corridor’ for the individual life planning and activities’ (Betzelt and Bothfeld, 2011: 247).…”

Section: From Socialised Responsibility To Punitive Individualism: Fimentioning

confidence: 99%

Work Enforcement in Liberal Democracies

Raffass

2016

J. Soc. Pol.

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The paper aims to contribute to the normative debate concerning work enforcement in liberal democracies. In the late 1980s, OECD countries began to revert to the pre-welfare-state tradition of attributing unemployment to personal failure. The new welfare-to-work policies emphasised individual responsibility for securing employment. Stepping up job search requirements and sanctions for failure to meet them was presented as a public intervention that helps unemployed individuals return from dependency to autonomy. Jobseekers have been made to believe that success in obtaining employment depends on how doggedly they search for work and how adaptable they become to employer needs. These presumptions are challenged in the paper. Contracts that jobseekers are forced to sign with providers of employment services curtail their autonomy not only to the extent that they cannot avoid unproductive activity tests imposed on them, but also from a lifetime perspective in cases where they are forced into inferior jobs. In job-short economies, employers are also certain to discriminate against disadvantaged jobseekers notwithstanding the intensity of their effort or openness to occupational change.

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Low-Wage Jobs – Springboard to High-Paid Ones?

Cited by 9 publications

References 27 publications

Low Paid Employment in Britain: Estimating State‐Dependence and Stepping Stone Effects

Low Paid Employment in Britain: Estimating State‐Dependence and Stepping Stone Effects

Do Scarring Effects of Low‐Wage Employment and Non‐Employment Differ BETWEEN Levels of Qualification?

Work Enforcement in Liberal Democracies

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