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Improving Employment Retention and Advancement of Low-Paid Workers

Author

Listed:
  • Daniel Perkins

    (Brotherhood of St Laurence)

  • Rosanna Scuttella

    (University of Melbourne)

Abstract

Little is known in Australia as to whether the types of jobs that disadvantaged jobseekers are encouraged to enter do actually provide the basis for a ‘successful’ transition into the labour market. At the very least, this ‘successful’ transition would consist of being able to retain employment. Ideally, it would then lead to career advancement and wage progression. This study outlines the support provided by existing employment assistance programs to enable disadvantaged job seekers to make such a transition, then uses the Household Income and Labour Dynamics in Australia (HILDA) survey to examine the extent to which low-skilled jobseekers both retain employment and then advance. Aggregate figures highlight problems with jobseekers retaining employment with at least circumstantial evidence of a ‘low-pay no-pay’ cycle in the Australian labour market. We conclude that to improve employment retention and advancement of the low-skilled, current employment assistance programs should be expanded to include a range of retention and advancement strategies that have been developed in the US and the UK.

Suggested Citation

  • Daniel Perkins & Rosanna Scuttella, 2008. "Improving Employment Retention and Advancement of Low-Paid Workers," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(1), pages 97-114.
    • Handle: RePEc:ozl:journl:v:11:y:2008:i:1:p:97-114
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    References listed on IDEAS

    as
    1. Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54, January.
    2. Peck, Jamie & Theodore, Nikolas, 2000. "Commentary: 'Work First': Workfare and the Regulation of Contingent Labour Markets," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 24(1), pages 119-138, January.
    3. Peck, Jamie & Theodore, Nikolas, 2000. "Beyond 'Employability.'," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 24(6), pages 729-749, November.
    4. Sue Richardson & Lauren Miller-Lewis, 2002. "Low Wage Jobs and Pathways to Better Outcomes," Treasury Working Paper Series 02/29, New Zealand Treasury.
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    Citations

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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. Lixin Cai, 2015. "The dynamics of low pay employment in Australia," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(7), pages 1095-1123, October.
    3. Lixin Cai, 2014. "State-Dependence and Stepping-Stone Effects of Low-Pay Employment in Australia," The Economic Record, The Economic Society of Australia, vol. 90(291), pages 486-506, December.
    4. Deborah A. Cobb‐Clark & Lihini De Silva, 2021. "Participation, Unemployment, and Wages," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 54(4), pages 482-493, December.
    5. Ian Watson, 2008. "Low Paid Jobs and Unemployment: Churning in the Australian Labour Market, 2001 to 2006," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(1), pages 71-96.
    6. Jennifer Baxter & Jennifer Renda, 2011. "Lone and couple mothers in the Australian labour market: differences in employment transitions," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 14(2), pages 103-122.

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    More about this item

    Keywords

    Labor economics general;

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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