The Wage Mobility of Low-Wage Workers in a Changing Economy, 1981-2015

• In Event: 2451 - Section on Organizations, Occupations, and Work Refereed Roundtables (1 hour)
  In Refereed Roundtable 60min: Table 8. Income Disparities

Abstract

How are changes in the low-wage labor market affecting the mobility of workers out of low-wages? I investigate changes in the wage mobility of workers starting employment spells in low-wages between 1981-2015 using the Panel Study of Income Dynamics and discrete-time event history analysis. The results indicate mobility rates for low-wage workers are mostly stable across entry periods, except for shifts downward during recessions. About half of all low-wage workers move to better wages within four years. There are significant effects on mobility rates by education, age, gender, race, occupation, and job characteristics. Changes in demographics, human capital, and occupational characteristics, and firm changes across time are found to explain little of the change in mobility rates across time.

Author

• Michael Schultz, University of North Carolina at Chapel Hill