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...

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...