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Expected Interruptions in Labor Force Participation and Sex Related Differences in Earnings Growth

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Yoram Weiss

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Abstract

The 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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0667.

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Date of creation: Apr 1981
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Handle: RePEc:nbr:nberwo:0667

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  1. Pierre-André Chiappori & Murat Iyigun & Yoram Weiss, 2006. "Investment in Schooling and the Marriage Market," IZA Discussion Papers 2454, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Mette Ejrnæs & Astrid Kunze, 2002. "Wage dips and drops around the first birth," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C2-4, International Conferences on Panel Data. [Downloadable!]
  3. Catherine Weinberger & Peter Kuhn, 2006. "The Narrowing of the U.S. Gender Earnings Gap, 1959-1999: A Cohort-Based Analysis," IZA Discussion Papers 2007, Institute for the Study of Labor (IZA). [Downloadable!]
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  4. Alison L. Booth & Marco Francesconi & Jeff Frank, 2002. "Temporary Jobs: Stepping Stones Or Dead Ends?," Economic Journal, Royal Economic Society, vol. 112(480), pages F189-F213, June. [Downloadable!] (restricted)
    Other versions:
  5. Cohen-Goldner, Sarit & Eckstein, Zvi, 2004. "Estimating the Return to Training and Occupational Experience: The Case of Female Immigrants," IZA Discussion Papers 1225, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Michal Myck & Gillian Paull, 2001. "The role of employment experience in explaining the gender wage gap," IFS Working Papers W01/18, Institute for Fiscal Studies. [Downloadable!]
  7. Ken Yamada, 2008. "Heterogeneity in Returns to Work Experience: A Dynamic Model of Female Labor Force Participation," Working Papers 10-2009, Singapore Management University, School of Economics, revised Aug 2009. [Downloadable!]
  8. Claudia Olivetti, 2005. "Changes in Women's Hours of Market Work: The Role of Returns to Experience," Boston University - Department of Economics - Macroeconomics Working Papers Series WP2005-008, Boston University - Department of Economics, revised Jun 2006. [Downloadable!]
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  9. Philip Trostel & Ian Walker, 2006. "Education and Work," Education Economics, Taylor and Francis Journals, vol. 14(4), pages 377-399, December. [Downloadable!] (restricted)
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  10. Solomon Polachek, 2003. "Mincer's Overtaking Point and the Life Cycle Earnings Distribution," Review of Economics of the Household, Springer, vol. 1(4), pages 273-304, December. [Downloadable!] (restricted)
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  11. Bisakha Sen, 2003. "Why do Women feel the way they do about market work: the role of familial, social and economic factors," Review of Social Economy, Taylor and Francis Journals, vol. 61(2), pages 211-234, June. [Downloadable!] (restricted)
  12. Francine D. Blau, 1990. "Career Plans and Expectations of Young Women and Men: The Earnings Gap and Labor Force Participation," NBER Working Papers 3445, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Michal Myck & Gillian Paull, 2004. "The role of employment experience in explaining the gender wage gap," IFS Working Papers W04/16, Institute for Fiscal Studies. [Downloadable!]
  14. Francine D. Blau, 1996. "The Gender Pay Gap," NBER Working Papers 5664, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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