Expected Interruptions in Labor Force Participation and Sex Related Differences in Earnings Growth
AbstractThe paper analyzes the joint determination of wives' earnings and labor force participation over the life cycle given the interruptions in wives' work careers. The interruptions affect the profitability of the investment in human capital, which in turn determines earnings. The earnings prospects feed back into the participation decision, namely, the decision whether and for how long to drop out of the labor force. The formal analysis compares the age-earnings profiles of persons who drop out of the labor force with those who do not during the pre- and post-interruption period. The comparison is carried out where interruptions are assumed to be exogenous and when they are endogenous. The effect of productivity at home, the initial stock of human capital and its rental value on the length of the interruption is investigated.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0667.
Date of creation: Apr 1981
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- Weiss, Yoram & Gronau, Reuben, 1981. "Expected Interruptions in Labour Force Participation and Sex-Related Differences in Earnings Growth," Review of Economic Studies, Wiley Blackwell, vol. 48(4), pages 607-19, October.
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