A high proportion of well-educated women in Denmark chooses to work part-time or completely stay outside the labour market. We analyse this phenomenon in a discrete choice dynamic programming framework, taking the potentially endogenous effect of work experience on annual earnings into account. The main findings are that the disutility of full-time work increases with obtained work experience and education. Only the level of returns to these variables serves to outweigh this effect, and results in a high degree of persistence in the full-time participation pattern. Simulation reveals that the participation pattern is significantly affected by changing returns to skills.
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Publisher Info
Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number
03-8.
Length: 30 pages Date of creation: 01 Aug 2003 Date of revision: Handle: RePEc:hhs:aareco:2003_008
Note: Published in Danish Journal of Economics, vol. 144(1), pp43-74, 2006 Contact details of provider: Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark Phone: +45 89 486396 Fax: +45 8615 5175 Web page: http://www.asb.dk/departments/nat.aspx More information through EDIRC
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