Low wage earners : who manages to reach higher wage levels?

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 played a role in this context. It is shown that just one out of eight of these low-wage earners was able to earn wages above the low wage threshold in 2005. While younger and better qualified low-wage earners record a higher probability of getting higher wages, 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." (Author's abstract, IAB-Doku) ((en))

Cite article

Schank, T., Schnabel, C. & Stephani, J. (2009): Geringverdiener: Wem und wie gelingt der Aufstieg? In: Jahrbücher für Nationalökonomie und Statistik, Vol. 229, No. 5, p. 584-614.