abstract: 'The experience of unemployment itself increases the risk of staying

  unemployed, and the unemployed face a high poverty risk. Moreover,

  experiencing poverty reduces the chances of reemployment. As wage

  inequality has expanded in recent decades, low-paid employment and

  in-work poverty have both risen. This study analyzes whether low-pay

  employment helps people escape the no-pay - low-income trap. Survey data

  from the German Socio-Economic Panel for the period 1995-2012 are used

  to estimate correlated random-effects probit models on the labor-market

  and income dynamics. The findings suggest that low-paid employment is

  especially helpful to exit the no-pay - low-income trap for persons who

  are long-term unemployed, as well as for those over 40 who have been

  unemployed for a short period of time. No indications of a low-pay -

  low-income trap are found.'
affiliation: 'Plum, A (Corresponding Author), Otto von Guericke Univ, Chair Publ Econ,
  Univ Pl 2, D-39106 Magdeburg, Germany.

  Plum, Alexander, Otto von Guericke Univ, Chair Publ Econ, Univ Pl 2, D-39106 Magdeburg,
  Germany.'
article-number: '20160078'
author: Plum, Alexander
author-email: alexander.plum@ovgu.de
author_list:
- family: Plum
  given: Alexander
da: '2023-09-28'
doi: 10.1515/bejeap-2016-0078
files: []
issn: 1935-1682
journal: B E JOURNAL OF ECONOMIC ANALYSIS \& POLICY
keywords: 'unemployment dynamics; low-pay dynamics; poverty dynamics;

  random-effects probit models; maximum simulated likelihood'
keywords-plus: 'LABOR-MARKET; PUBLIC-POLICY; JOB SEARCH; UNEMPLOYMENT; POVERTY;

  HETEROGENEITY; DYNAMICS; MODEL; INEQUALITY; DEPENDENCE'
language: English
month: OCT
number: '4'
number-of-cited-references: '61'
papis_id: 564007c14af749510c3a4cbaf2b1085c
ref: Plum2016canlowwage
researcherid-numbers: Plum, Alexander/J-7276-2019
times-cited: '1'
title: Can Low-Wage Employment Help People Escape from the No-Pay - Low-Income Trap?
type: Article
unique-id: WOS:000395809400006
usage-count-last-180-days: '1'
usage-count-since-2013: '8'
volume: '16'
web-of-science-categories: Economics
year: '2016'