Entry-level jobs: First rung on the employment ladder or economic dead end?

Abstract

The ability of young workers to move from dead-end jobs into higher-wage jobs which have better career prospects is greatly influenced by the individual’s characteristics, local labor market conditions, and his or her human capital. This paper examines the characteristics of entry-level jobs of young workers in the 1980s with emphasis on how education and training influence the types of jobs held. The incidence of post-school training is quite low even though all types of post-school training raise wages significantly. Company-provided training reduces the probability that a young worker will leave his or her employer, while off-the-job training increases the ability of employees, especially young women, to move out of a dead-end job.