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Geringverdiener: Wem und wie gelingt der Aufstieg? / Low-Wage Earners: Who Manages to Reach Higher Wage Levels?

Thorsten Schank (), Claus Schnabel () and Stephani Jens ()
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Stephani Jens: Institut für Arbeitsmarkt- und Berufsforschung (IAB) Regensburger Strasse 104, 90478 Nürnberg, Germany

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2009, vol. 229, issue 5, 584-614

Abstract: Using representative linked employer-employee data of the German Federal Employment Agency, this paper analyzes to which extent full-time employees who earned low wages (less than two-thirds of the median wage) in 1998/99 were able to earn higher wages in the following years, and which factors play a role in this context. It is shown that just one out of seven of these low-wage earners was able to earn wages above the low wage threshold in 2005. Bivariate probit estimations with endogenous selection indicate that younger and better qualified low-wage earners record a higher probability of getting higher wages, whereas women are less successful. In addition, this probability shows a significant relationship with the size and the employment structure of the establishment. Moving from one establishment to another is an important instrument for leaving low-wage employment.

Keywords: Geringverdiener; Niedriglohnsektor; Aufstiegsmobilität (search for similar items in EconPapers)
Date: 2009
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