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From No Pay to Low Pay and Back Again? A Multi-State Model of Low Pay Dynamics

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dc.creator Uhlendorff, Arne
dc.date 2006
dc.date.accessioned 2013-10-16T07:00:30Z
dc.date.available 2013-10-16T07:00:30Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18541
dc.identifier ppn:521129397
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18541
dc.description This study analyzes the mobility between three labor market states: working in low paid jobs, working in higher paid jobs and not working. Using German panel data I estimate dynamic multinomial logit panel data models with random effects taking the initial conditions problem and potential endogeneity of panel attrition into account. In line with results from other countries, this first study on Germany finds true state dependence in low pay jobs and confirms previous results of state dependence in non-employment. Moreover, I find evidence for a \low pay no pay cycle", i.e. being low paid or not employed itself increases the probability of being in one of these states in the next year. However, compared to non working, being low paid does not have adverse effects on future employment prospects: the employment probability increases with low pay employment and the probability of being high paid seems to be higher for previously low paid workers. I find no evidence for endogenous panel attrition.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 648
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject C33
dc.subject J31
dc.subject J62
dc.subject J64
dc.subject C35
dc.subject ddc:330
dc.subject low pay dynamics
dc.subject unemployment dynamics
dc.subject dynamic random effects models
dc.subject state dependence
dc.subject panel attrition
dc.subject unobserved heterogeneity
dc.title From No Pay to Low Pay and Back Again? A Multi-State Model of Low Pay Dynamics
dc.type doc-type:workingPaper


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