This paper provides structural estimates of heterogeneous returns to work experience for Japanese married women. A dynamic model of labor force participation is used to account for dynamic selfselection into employment. Heterogeneity is incorporated into the model in a way that allows for the multidimensional skill heterogeneity in employment and home production and for the individual-specific slope and curvature of experience effect on earnings. The structural estimates and their comparison to the reduced-form estimates highlight the importance of dynamic self-selection into employment and heterogeneity in returns to work experience.
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Paper provided by Singapore Management University, School of Economics in its series Working Papers with number
10-2009.
Length: 27 pages Date of creation: Apr 2008 Date of revision:
Aug 2009 Publication status: Published in SMU Economics and Statistics Working Paper Series Handle: RePEc:siu:wpaper:10-2009
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