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Sex-Related Wage Differentials and Women's Interrupted Labor Careers--The Chicken or the Egg

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  • Gronau, Reuben

Abstract

Wage differentials between men and women are often attributed to differences in on-the-job training-the lower investment of women being explained by their plans to interrupt their careers for family reasons. Career interruptions, however, are often explained by low wages. To trace this interrelationship, the author adopts a simultaneous equations approach-trying to explain wages, planned separations, on-the-job training, and the skill intensity of the job simultaneously. Skill intensity is found to be a key variable in the explanation of the wage differential. Traditional theory is hard pressed to explain the sex-related differences in this variable. Copyright 1988 by University of Chicago Press.

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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 6 (1988)
Issue (Month): 3 (July)
Pages: 277-301

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Handle: RePEc:ucp:jlabec:v:6:y:1988:i:3:p:277-301

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  1. Salop, Joanne & Salop, Steven, 1976. "Self-Selection and Turnover in the Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 90(4), pages 619-27, November.
  2. Duncan, Greg J & Hoffman, Saul, 1979. "On-the-Job Training and Earnings Differences by Race and Sex," The Review of Economics and Statistics, MIT Press, vol. 61(4), pages 594-603, November.
  3. Steven H. Sandell & David Shapiro, 1980. "Work Expectations, Human Capital Accumulation, and the Wages of Young Women," Journal of Human Resources, University of Wisconsin Press, vol. 15(3), pages 335-353.
  4. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  5. Joanne Salop & Steve Salop, 1976. "Self-selection and turnover in the labor market," Special Studies Papers 80, Board of Governors of the Federal Reserve System (U.S.).
  6. Fuchs, Victor R, 1974. "Recent Trends and Long-Run Prospects for Female Earnings," American Economic Review, American Economic Association, vol. 64(2), pages 236-42, May.
  7. Jovanovic, Boyan, 1979. "Firm-specific Capital and Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1246-60, December.
  8. F. Thomas Juster, 1977. "Distribution of Economic Well-Being," NBER Books, National Bureau of Economic Research, Inc, number just77-1.
  9. Dale T. Mortensen, 1978. "Specific Capital and Labor Turnover," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 572-586, Autumn.
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