Characteristics of Low-Wage Workers and Their Labor Market Experiences:
Evidence from the Mid- to Late 1990s

Appendix D:
Supplementary Tables To Chapter V

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Table

  1. Table D.1. Distribution Of Initial Demographic And Job Characteristics Of Low-Wage Workers Employed Three Years Later Compared With Those Not Employed Three Years Later
  2. Table D.2. Average Real Wages Over Time Among All Job Starters, By Wage Type
  3. Table D.3. Real Wages Relative To Poverty, At The Time Of The Follow-Up Period, By Wage Type And Gender
  4. Table D.4. Growth In Real Hourly Wages Over Three Years, By Worker Type
  5. Table D.5. Distribution Of Job Characteristics Across Initial Job And Most Recent Job Three And Half Years Later Of Low-, Medium, And High-Wage Workers, By Gender
  6. Table D.6. Multivariate Analysis Findings On The Percentage Of Low-Wage Workers Switching To A Medium- Or High-Wage Job And The Percentage Of Low-Wage Workers Experiencing At Least A 50 Percent Increase In Wages By The End Of The Followup Period, By Gender

Table D.1.
Distribution Of Initial Demographic And Job Characteristics Of Low-Wage Workers
Employed Three Years Later Compared With Those Not Employed Three Years Later
(Percentages)
Characteristics Male Low-Wage Workers Female Low-Wage Workers
Employed at Both Periods Not Employed Three Years Later Employed at Both Periods Not Employed Three Years Later
Individual and Household Characteristics
Gender
   Females 0 0 80 20
   Males 88 12 0 0
Age
   Younger than 20 13 8 8 7
   20 to 29 43 33 39 37
   30 to 39 24 15 25 29
   40 to 49 13 15 18 13
   50 or older 8 28 9 15
   (Average age) (31.0) (37.7) (33.3) (34.1)
Race/Ethnicity
   White and other non-Hispanic 72 68 75 74
   Black, non-Hispanic 13 25 14 13
   Hispanic 15 7 11 13
Educational Attainment
   Less than high school/GED 26 27 16 25
   High school/GED 43 42 45 35
   Some college 16 22 17 21
   College graduate or more 16 9 22 20
Has a Health Limitation 10 31 8 19
Household Type
   Single adults with children 13 11 25 24
   Married couples with children 39 20 38 38
   Married couples without children 23 39 20 22
   Other adults without children 26 30 17 16
Household Income as a Percentage of the Federal Poverty Level
   100 percent or less 23 14 22 18
   101 to 200 percent 28 38 28 38
   More than 200 percent 49 48 51 45
Job Characteristics
Hourly Wages
   Less than $5.00 26 29 30 44
   $5.00 to $5.99 25 26 31 25
   $6.00 to $6.99 31 21 26 23
   $7.00 to $7.50 18 25 13 9
   (Average hourly wage in dollars) ($5.72) ($5.47) ($5.48) ($4.95)
Usual Hours Worked per Week
   1 to 19 8 12 16 19
   20 to 34 17 33 29 32
   35 to 40 54 38 47 40
   More than 40 21 18 8 10
   (Average hours worked) (38.2) (35.0) (31.5) (38.5)
Weekly Earnings
   Less than $150 21 33 39 50
   $150 to $299 65 54 56 48
   $300 or more 13 12 4 2
   (Average weekly earnings in dollars) ($220) ($194) ($176) ($154)
Occupation
   Professional/technical 8 6 10 6
   Sales/retail 11 9 18 14
   Administrative support/clerical 8 5 19 17
   Service professions/ handlers/cleaners 34 38 38 45
   Machinists/construction/production/
transportation
28 34 12 16
   Farm/agricultural/other workers 11 9 3 3
Sample Size 491 67 693 170
Source: SIPP March 1996 cross-sectional sample, and an entry cohort sample of those in the longitudinal panel file who started low-wage jobs during the first six months of the panel period.
Note: Figures are weighted using the longitudinal panel weight.

Table D.2.
Average Real Wages Over Time Among All Job Starters, By Wage Type
(In Dollars)
  Low Wage Medium Wage High Wage All
Males Females Males Females Males Females Males Females
Six-Month Period from Time of Job Start
1 7.06 6.49 11.58 11.13 22.79 22.69 11.97 9.47
2 7.74 6.96 11.94 11.68 22.43 21.57 12.30 9.88
3 8.31 7.10 12.19 11.97 22.91 21.48 12.73 10.08
4 8.87 7.59 12.45 12.22 23.20 22.06 13.11 10.49
5 8.94 7.91 12.86 12.40 22.58 23.14 13.17 10.80
6 8.94 8.04 13.30 12.56 23.11 22.23 13.46 10.84
Sample Sizes  491 to 558   687 to 863   541 to 571   420 to 481   270 to 286   122 to 138   1308 to 1415   1249 to 1482 
Source: 1996 SIPP longitudinal files.
a. Sample sizes are usually highest in period 0 and usually decrease as time from job start increases.

Table D.3.
Real Wages Relative To Poverty, At The Time Of The Follow-Up Period,By Wage Type And Gender
(Percentages)
  Low Wage Medium Wage High Wage
Males Females Males Females Males Females
Full-Time Earnings as a Percentage of Federal Poverty Level(a)
   Less than 50 percent 4 4 2 2 1 0
   50 to 100 percent 43 55 13 12 44 9
   101 to 150 percent 40 33 33 41 8 10
   151 to 200 percent 8 5 29 28 12 15
   201 to 250 percent 3 1 14 10 21 17
   More than 250 percent 2 1 9 7 54 50
Sample Sizes 491 693 541 420 270 126
Source: 1996 SIPP longitudinal file using workers who started low-wage jobs within six months after the start of the panel period.
Note: All figures were calculated using the longitudinal panel weight.
a. Refers to federal poverty level for a family of three.

Table D.4.
Growth In Real Hourly Wages Over Three Years, By Worker Type
  Low Wage Workers Medium Wage Workers High Wage Workers
Males Females Males Females Males Females
Percentage Employed in Both Periods(a) 82 74 92 85 93 87
Percentage Whose Wages:
   Increased 78 81 68 73 59 54
   Decreased 22 20 32 28 41 46
Percentage Change in Wages
   More than 50 percent 26 20 17 13 9 13
   26 to 50 percent 21 22 18 15 9 14
   11 to 25 percent 17 21 18 23 18 12
   1 to 10 percent 14 17 15 22 23 19
   -1 to -10 percent 9 9 12 11 16 15
   -11 to -25 percent 6 6 9 8 11 11
   -26 to -50 percent 3 2 8 6 6 12
   Less than -50 percent 4 2 3 3 8 8
Change in Real Wages Over Time (in Dollars)
   More than $5.00 14 9 16 12 17 22
   $2.51 to $5.00 21 15 22 19 14 12
   $1.01 to $2.50 21 29 16 21 13 8
   $0 to $1.00 21 27 15 21 14 12
   $0 to -$1.00 11 11 11 10 7 7
   -$1.01 to -$2.50 6 6 7 8 8 8
   -$2.51 to -$5.00 3 2 9 6 11 12
   Less than -$5.00 3 2 5 4 16 20
Percentage Whose Job Was:
   Low wage 47 60 14 13 5 9
   Medium wage 48 38 62 69 20 24
   High wage 5 2 23 18 75 67
Sample Size 460 to 481 636 to 693 529 to 641 409 to 420 256 to 270 121 to 126
Source: 1996 SIPP longitudinal file using workers who started low-wage jobs within six months after the start of the panel period.
Note: All figures were calculated using the longitudinal panel weight.
a. Refers to the average wages during period 1, the first six-month wage average after the base period used to categorize workers into wage type, and the average six-month wage three years later.

Table D.5.
Distribution Of Job Characteristics Across Initial Job And Most Recent Job Three And Half Years Later Of
Low-, Medium, And High-Wage Workers, By Gender
(Percentages)
Job Characteristics Males Workers Females Workers
Low Wage Workers Medium Wage Workers High Wage Workers Low Wage Workers Medium Wage Workers High Wage Workers
Initial Job Most Recent Job Initial Job Most Recent Job Initial Job Most Recent Job
Usual Hours Worked per Week
   1 to 19 8 5 4 2 4 2 16 10 9 6 13 11
   20 to 34 17 10 10 5 3 4 30 20 20 18 14 21
   35 to 40 54 60 49 58 50 49 46 62 55 60 48 52
   More than 40 22 26 37 36 43 46 8 8 16 17 25 16
   (Average hours worked) (38) (41) (42) (43) (44) (44) (31) (35) (36) (37) (37) (35)
Owns Business (Self-Employed) 9 8 7 7 12 12 6 5 5 5 12 7
Covered by Health Insurance(a) 24 52 46 74 77 89 34 65 64 84 76 84
Occupation
   Professional/technical 8 11 18 20 48 52 10 15 34 36 73 68
   Sales/retail 11 10 11 12 11 12 17 14 8 9 7 7
   Administrative support/clerical 6 6 9 7 5 4 19 22 35 34 12 15
   Service professions/handlers/cleaners 34 31 17 16 8 6 39 34 15 14 3 6
   Machinists/construction/production/transportation 29 36 41 42 26 26 12 13 8 7 4 3
   Farm/agricultural/other workers 11 6 4 4 2 0 3 2 1 0 1 1
Industry
   Agriculture, forestry, fishing, and hunting 11 8 6 5 6 6 8 6 4 4 7 6
   Mining/manufacturing/ construction 21 26 37 35 34 32 11 14 13 15 15 13
   Transportation/utilities 6 7 7 7 9 8 2 4 5 7 3 2
   Wholesale/retail trade 30 25 16 19 10 11 31 26 13 11 6 6
   Personal services 14 12 12 9 10 9 20 12 15 10 7 11
   Health services 2 2 2 2 3 3 8 11 16 16 26 24
   Other services 11 15 16 17 21 25 20 27 32 38 30 36
   Other 6 5 5 6 6 6 1 1 1 1 6 2
Union Member 3 8 8 12 24 26 2 4 6 8 7 8
Sample Size 491 491 541 541 270 270 693 693 420 420 126 126
Source: 1996 SIPP longitudinal files using workers who started jobs within six months after the start of the panel period.
Note: All figures are weighted using longitudinal panel weight. Sample includes individuals who started jobs at the start of the panel period and who held jobs three years later.
a. SIPP contains information on employer-based health insurance coverage only for jobs that were in progress at the time of the interview. Thus, the health insurance figures in this table pertain to jobs held by sample members at the time of the wave 1 and the wave 12 interviews.

Table D.6.
Multivariate Analysis Findings On The Percentage Of Low-Wage Workers Switching
To A Medium- Or High-Wage Job And The Percentage Of Low-Wage Workers
Experiencing At Least A 50 Percent Increase In Wages By The
End Of The Followup Period, By Gender
Explanatory Variable Regression-Adjusted Means for Models with Demographic
and Other Denoted Explanatory Variables
Switched to Medium or High-Wage Job Experienced 50 Percent Increase in Wages
Males Females Males Females
Individual Characteristics
Age
   Younger than 20(a) 39 39 19 23
   20 to 29 58** 43 27 19
   30 to 39 58** 43 25 20
   40 to 49 52 32 25 18
   50 or older 34 38 32 32
Race/Ethnicity
   White and other non-Hispanic(a) 55 41 25 20
   Black, non-Hispanic 43* 38 29 25
   Hispanic 49 39 27 17
Educational Attainment
   Less than high school/GED(a) 47 34 18 15
   High school/GED 51 36 23 17
   Some college 61* 48** 32* 27*
   College graduate or more 58 47* 38** 26
Has a Health Limitation
   No(a) 53 40 26 20
   Yes 51 41 21 28
Household Characteristics
Household Type
   Single adults with children(a) 61 41 27 23
   Married couples with children 55 41 28 24
   Married couples without children 49 30* 21 14*
   Other adults without children 50 50 26 19
Household Income as a Percentage of the Federal Poverty Level
   100 percent or less(a) 55 43 34 17
   101 to 200 percent 49 36 24* 18
   More than 200 percent 54 42 24 23
Received Public Assistance in the Past Year
   No(a) 54 41 27 20
   Yes 45 39 18* 21
Area Characteristics
Region of Residence
   Northeast(a) 56 37 29 21
   South 53 43 26 27
   Midwest 50 39 16** 20
   West 53 42 33 13
Lives in a Metropolitan Area
   No 46 35 16 17
   Yes 56* 43* 30** 22
20th Percentile of the Weekly Wage Distribution in State
   $250 or less(a) 51 41 22 21
   $251 to $269 54 44 31 23
   $270 or more 55 38 27 19
Percentage of State Population Residing in Metropolitan Areas
   72 percent or less(a) 52 41 29 20
   73 to 84 percent 60 32** 29 16
   85 percent or more 47 49 20 25
Poverty Rate in State
   Less than 10 percent(a) 52 47 20 23
   10 to 12 percent 59 45 31 20
   More than 12 percent 49 30** 26 19
Unemployment Rate in State
   6 percent or less(a) 50 42 25 22
   More than 6 percent 61 37 27 15
Change in Unemployment Rate in State of Residence Between 1996 and 1999 (Percentage Points)
   -2 percentage points or less(a) 46 41 14 31
   -1 to -2 percentage points 51 39 28 20
   More than -1 percentage point 59 44 28 19
Initial Job Characteristics
Hourly Wages
   Less than $5.00(a) 40 30 34 28
   $5.00 to $5.99 39 35 29 18**
   $6.00 to $6.99 62** 51** 20** 21
   $7.00 to $7.50 72** 52** 21** 12**
Usual Hours Worked per Week
   1 to 19(a) 39 33 19 14
   20 to 34 53 45** 32 24*
   35 to 40 55* 40 24 20
   More than 40 54* 40 27 28
Has More than One Job or Business
   No(a) 52 39 24 19
   Yes 59 47 34 30*
Owns Business (Self-Employed)
   No(a) 51 39 25 20
   Yes 71** 72** 39 33
Covered by Health Insurance(b)
   No(a) 50 38 26 21
   Yes 59* 43 26 20
Union Member
   No(a) 53 40 26 20
   Yes 62 57 17 33
Occupation
   Professional/technical(a) 49 38 21 21
   Sales/retail 54 47 29 24
   Administrative support/clerical 64 49 36 19
   Service professions/handlers/cleaners 46 34 23 17
   Machine/construction/production/transportation 60 36 27 27
   Farm/agricultural/other workers 49 56 27 29
Industry
   Agriculture/forestry/ fishing and hunting(a) 48 15 21 8
   Mining/manufacturing/construction/transportation and warehousing/utilities 54 40** 29 16
   Wholesale/retail trade 54 43** 22 25*
   Services/other 52 44** 28 21
Type of Worker
   Continuous worker with only one employer/business 51 35 20 11
   Continuous worker with more than one employer/business 55 43 24 18
   Intermittent worker, employed less than 75% of time 36/** 37 27 23*
   Intermittent worker, employed 75% or more of time 59 43* 29 26**
Regression R(2) Value
Sample Size 491 693 491 693
Source: 1996 SIPP longitudinal files using the entry cohort sample of workers who started low-wage jobs within six months after the start of the panel period. All workers were followed for 42 months after job start.
Note: All figures are weighted using the 1996 calendar year weight, and standard errors account for design effects due to weighting and clustering.
a. Denotes the "left-out" explanatory variable in the regression model.
b. These figures pertain to health insurance coverage from all sources, including coverage through the employer as well as from other sources. We used this variable instead of the employer-based health insurance coverage variable, because data on overall health insurance coverage is available monthly, whereas the employer-based coverage variable pertains only to jobs in progress at the time of the interview. Thus, the employer-based health insurance variable could not always be linked to the job under investigation, which led to a significant number of missing values. However, the subsets of health insurance variables overlap considerably: the source of health insurance coverage was the employer for 80 percent of those with any coverage.
* Difference between the variable mean and the mean of the "left-out" explanatory variable is significantly different from zero at the .10 level, two-tailed test.
** Difference between the variable mean and the mean of the "left-out" explanatory variable is significantly different from zero at the .05 level, two-tailed test.


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