Low-wage employment

Claus Schnabel

IZA World of Labor, 2016, No 276, 276

Abstract: Low-wage employment has become an important feature of the labor market and a controversial topic for debate in many countries. How to interpret the prominence of low-paid jobs and whether they are beneficial to workers or society is currently an open question. The answer depends on whether low-paid jobs are largely transitory and serve as stepping stones to higher-paid employment, whether they become persistent, or whether they result in repeated unemployment. The empirical evidence is mixed, pointing to both stepping-stone effects and “scarring” effects (i.e. long-lasting detrimental effects) of low-paid work.

Keywords: low-wage employment; wages; stepping stone; state dependence (search for similar items in EconPapers)
JEL-codes: J21 J30 J31 (search for similar items in EconPapers)
Date: 2016
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Journal Article: Low-wage employment (2021)
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