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Explaining Age and Gender Differences in Employment Rates: A Labor Supply Side Perspective

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  • Stephan Humpert

    ()
    (Institute of Economics, Leuphana University Lueneburg, Germany)

  • Christian Pfeifer

    ()
    (Institute of Economics, Leuphana University Lueneburg, Germany)

Abstract

This paper takes a labor supply perspective (neoclassical labor supply, job search) to explain the lower employment rates of older workers and women. The basic rationale is that workers choose non-employed if their reservation wages are larger than the offered wages. Whereas the offered wages depend on workers' productivity and firms' decisions, reservation wages are largely determined by workers' endowments and preferences for leisure. To shed some empirical light on this issue, we use German survey data to analyze age and gender differences in reservation and entry wages, preferred and actual working hours, and satisfaction with leisure and work.

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Bibliographic Info

Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 214.

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Length: 73 pages
Date of creation: Aug 2011
Date of revision:
Handle: RePEc:lue:wpaper:214

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Web page: http://leuphana.de/institute/ivwl.html

Related research

Keywords: Age; Family gap; Gender; Job search; Labor supply; Reservation wages;

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References

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Citations

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Cited by:
  1. Pfeifer, Christian & Wagner, Joachim, 2012. "Age and Gender Composition of the Workforce, Productivity and Profits: Evidence from a New Type of Data for German Enterprises," IZA Discussion Papers 6381, Institute for the Study of Labor (IZA).
  2. Pfeifer, Christian & Wagner, Joachim, 2012. "Is innovative firm behavior correlated with age and gender composition of the workforce? Evidence from a new type of data for German enterprises," Working Paper Series in Economics and Institutions of Innovation 291, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  3. Stephan Humpert, 2012. "Age and Gender Differences in Job Opportunities," Working Paper Series in Economics 235, University of Lüneburg, Institute of Economics.
  4. Caliendo, Marco & Lee, Wang-Sheng & Mahlstedt, Robert, 2014. "The Gender Wage Gap: Does a Gender Gap in Reservation Wages Play a Part?," IZA Discussion Papers 8305, Institute for the Study of Labor (IZA).

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