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Low-wage employment versus unemployment: which one provides better prospects for women?

Alexander Mosthaf, Thorsten Schank () and Claus Schnabel ()

No 65, Discussion Papers from Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics

Abstract: This study analyzes state dependence in low-wage employment of western German women using GSOEP data, 2000-2006. We estimate dynamic multinomial logit models with random effects and find that having a low-wage job increases the probability of being low-paid and decreases the chances of being high-paid in the future, in particular for low-paid women working part-time. However, concerning future wage prospects low-paid women are clearly better off than unemployed or inactive women. We argue that for women low-wage jobs can serve as stepping stones out of unemployment and are to be preferred to staying unemployed and waiting for a better job.

Keywords: low-pay dynamics; state dependence; dynamic multinomial logit model (search for similar items in EconPapers)
JEL-codes: J30 J60 C33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dcm and nep-lab
Date: 2009
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Related works:
Journal Article: Low-wage employment versus unemployment: Which one provides better prospects for women? (2014) Downloads
Working Paper: Low-Wage Employment versus Unemployment: Which One Provides Better Prospects for Women? (2009) Downloads
Working Paper: Low-wage employment versus unemployment: which one provides better prospects for women? (2009) Downloads
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