This paper aims
to analyze the effects of low-paying jobs on the occupational trajectories of
Uruguayan workers in the period 1997-2015. The main interest is the
identification of the dependence state, determining its relevance and
heterogeneity according to sex and sub-period, also analyzing the link between
a low-paid job and the drop out from formal employment. I estimate a logistic
multinomial dynamic model with random effects and find true state dependence in
low pay jobs, more relevant for women and in the last subperiod (2005 -2015)
where the national minimum wage and formality in employment increased.
Likewise, the results do not allow us to affirm that there is a circle of
dependency between low-paid work-no formal work, nor that low-paid jobs operate
as a springboard for access to higher-quality jobs.
