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Low-Wage Youth Employment: A Permanent or Transitory State?

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  • Miller, Paul W

Abstract

One of the striking features of the youth wage distribution is the extent to which an individual's relative position in the distribution changes between contiguous years. Formal modeling of these changes using a bivariate probit model suggests that low-wage employment should not, in general, be viewed as a permanent state. Individuals in low-wage jobs in adjacent years are characterized by a lack of human capital. Accordingly, remedial action might be directed toward augmenting their skills thought supplementary schooling or labor market training. Copyright 1989 by The Economic Society of Australia.

Suggested Citation

  • Miller, Paul W, 1989. "Low-Wage Youth Employment: A Permanent or Transitory State?," The Economic Record, The Economic Society of Australia, vol. 65(189), pages 126-135, June.
    • Handle: RePEc:bla:ecorec:v:65:y:1989:i:189:p:126-35
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    Cited by:

    1. Hielke Buddelmeyer & Wang‐Sheng Lee & Mark Wooden, 2010. "Low‐Paid Employment and Unemployment Dynamics in Australia," The Economic Record, The Economic Society of Australia, vol. 86(272), pages 28-48, March.
    2. Anh T. Le & Paul W. Miller, 2001. "The Persistence of the Female Wage Disadvantage," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(1), pages 33-52.
    3. Ian Watson, 1993. "Life History Meets Economic Theory: The Experiences of Three Working-Class Women in a Local Labour Market," Work, Employment & Society, British Sociological Association, vol. 7(3), pages 411-435, September.
    4. Barry R. Chiswick & Yew Liang Lee & Paul W. Miller, 2005. "Immigrant Earnings: A Longitudinal Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 485-503, December.
    5. Josefina Bruni Celli & Richard Obuchi, 2002. "Adolescents and Young Adults in Latin America, Critical Decisions at a Critical Age: Young Adult Labor Market Experience," Research Department Publications 3161, Inter-American Development Bank, Research Department.

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