%0 Report %A Mosthaf, Alexander %A Schank, Thorsten %A Schnabel, Claus %T Low-Wage Employment versus Unemployment: Which One Provides Better Prospects for Women? %D 2009 %8 2009 Dec %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 4611 %U https://www.iza.org/index.php/publications/dp4611 %X 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. %K state dependence %K dynamic multinomial logit model %K low-pay dynamics