Stewart, Mark B.. (2007) The interrelated dynamics of unemployment and low-wage employment. Journal of Applied Econometrics, Vol.22 (No.3). pp. 511-531. ISSN 0883-7252

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Abstract

This paper examines the extent of state dependence in unemployment and the role played in this by intervening low-wage employment. A range of dynamic random and fixed-effects estimators are compared. Low-wage employment is found to have almost as large an adverse effect as unemployment on future prospects and the difference in their effects is found to be insignificant. Evidence is presented that low-wage jobs act as the main conduit for repeat unemployment and considerably increases its probability. Obtaining a higher-wage job reduces the increased risk of repeat unemployment to insignificance.

Item Type:	Journal Article
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences
Divisions:	Faculty of Social Sciences > Economics
Journal or Publication Title:	Journal of Applied Econometrics
Publisher:	Wiley-Blackwell Publishing, Inc
ISSN:	0883-7252
Official Date:	April 2007
Volume:	Vol.22
Number:	No.3
Number of Pages:	21
Page Range:	pp. 511-531
Identification Number:	10.1002/jae.922
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
Funder:	Leverhulme Trust
URI:	http://wrap.warwick.ac.uk/id/eprint/31956

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