Low-Paid Employment and Unemployment Dynamics in Australia

This article uses longitudinal data from the Household, Income and Labour Dynamics in Australia (or HILDA) Survey to examine the extent to which the relatively high rates of transition from low‐paid employment into unemployment are the result of disadvantageous personal characteristics or are instea...

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Bibliographic Details
Published in:The Economic record 2010-03, Vol.86 (272), p.28-48
Main Authors: BUDDELMEYER, HIELKE, LEE, WANG-SHENG, WOODEN, MARK
Format: Article
Language:English
Subjects:
Australia
C23
C25
Employment
J31
J64
Labour demand
Labour economics
Labour force
Labour force utilization
Labour market participation
Labour market structure
Labour mobility
Labour supply
Low income
Studies
Transitions
Unemployed
Unemployment
Wage rates
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Summary:This article uses longitudinal data from the Household, Income and Labour Dynamics in Australia (or HILDA) Survey to examine the extent to which the relatively high rates of transition from low‐paid employment into unemployment are the result of disadvantageous personal characteristics or are instead a function of low‐paid work itself. Dynamic random effects probit models of the likelihood of unemployment are estimated. After controlling for unobserved heterogeneity and initial conditions, we find that, relative to high‐paid employment, low‐paid employment is associated with a higher risk of unemployment, but this effect is only significant among women. We also find only weak evidence that low‐paid employment is a conduit for repeat unemployment.
ISSN:0013-0249
1475-4932
DOI:10.1111/j.1475-4932.2009.00595.x