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Title: Can Low-Wage Workers Find Better Jobs?

Citation Type: Working Paper

Publication Year: 2018

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Abstract: There is growing concern over rising economic inequality, the decline of the middle class, and a polarization of the U.S. workforce. This study examines the extent to which low-wage workers in the United States transition to better jobs, and explores the factors associated with such a move up the job ladder. Using data covering the expansion following the Great Recession (2011-17) and focusing on short-term labor market transitions, we find that around 70 percent of low-wage workers stayed in the same job, 11 percent exited the labor force, 7 percent became unemployed, and 6 percent switched to a different low-wage job. Troublingly, just slightly more than 5 percent of low-wage workers found a better job within a 12-month period. Study results point to the importance of educational attainment in helping low-wage workers move up the job ladder.

Url: https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr846.pdf

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Authors: Gabe, Todd; Abel, Jaison, R; Florida, Richard

Series Title: Federal Reserve Bank of New York Staff Reports

Publication Number: 846

Institution: Federal Reserve Bank of New York

Pages: 38

Publisher Location: New York, NY

Data Collections: IPUMS USA, IPUMS CPS

Topics: Labor Force and Occupational Structure

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