TY - RPRT AU - Mosthaf, Alexander AU - Schank, Thorsten AU - Schnabel, Claus TI - Low-Wage Employment versus Unemployment: Which One Provides Better Prospects for Women? PY - 2009/Dec/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 4611 UR - https://www.iza.org/index.php/publications/dp4611 AB - 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. KW - state dependence KW - dynamic multinomial logit model KW - low-pay dynamics ER -