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Culture as Learning: The Evolution of Female Labour Force Participation Over a Century

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Author Info
Fernández, Raquel
Abstract

Married women's labour force participation has increased dramatically over the last century. Why this has occurred has been the subject of much debate. This paper investigates the role of culture as learning in this change. To do so, it develops a dynamic model of culture in which individuals hold heterogeneous beliefs regarding the relative long-run payoffs for women who work in the market versus the home. These beliefs evolve rationally via an intergenerational learning process. Women are assumed to learn about the long-term payoffs of working by observing (noisy) private and public signals. They then make a work decision. This process generically generates an S-shaped figure for female labour force participation, which is what is found in the data. The S shape results from the dynamics of learning. I calibrate the model to several key statistics and show that it does a good job in replicating the quantitative evolution of female LFP in the US over the last 120 years. The model highlights a new dynamic role for changes in wages via their effect on intergenerational learning. The calibration shows that this role was quantitatively important in several decades.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6451.

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Date of creation: Sep 2007
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Handle: RePEc:cpr:ceprdp:6451

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Related research
Keywords: cultural transmission female labour force participation learning preference formation S shape

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Find related papers by JEL classification:
D19 - Microeconomics - - Household Behavior - - - Other
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
Z1 - Other Special Topics - - Cultural Economics

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    Other versions:
  2. Raquel Fernandez & Alessandra Fogli, 2005. "Culture: An Empirical Investigation of Beliefs, Work, and Fertility," NBER Working Papers 11268, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Rob Euwals & Marike Knoef & Daniel van Vuuren, 2007. "The Trend in Female Labour Force Participation: What Can Be Expected for the Future?," IZA Discussion Papers 3225, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Rob Euwals & Marike Knoef & Daniel van Vuuren, 2007. "The trend in female labour force participation," CPB Discussion Papers 93, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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