Firm Behaviour in Making Hiring, Retention, and Promotion Decisions for Low-Wage Workers

摘要

Low wage workers--as compared with non-low-wage workers--tend to be female, to be younger, and to have less human capital in the form of education, vocational training, and work experience. They work in smaller establishments, in firms with young workers, in nonunionized firms, in retail and wholesale trade establishments, and in sales and service occupations. They hold jobs requiring less training, less job security, and work fewer hours per week. Promotion rates are very similar between low-wage workers and non-low-wage workers. However, wages are an important causal factor in explaining voluntary separations: quit rates are higher for low-wage jobs than for non-low-wage jobs. Receiving more on-the-job-training (OJT) than the typical worker in the same job is significantly related to a higher probability of a promotion and a lower probability of a separation for both low-wage and non-low-wage workers. The hypothesis of a 'dual' labor market does not appear to be confirmed. Generally, firm and job characteristics are more important in explaining outcomes than are worker characteristics. Policy needs to be directed at delivery of human capital enhancements such as education and skills training, especially in job search techniques.