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The Role of Labor Market Intermittency in Explaining Gender Wage Differentials

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  • Julie L. Hotchkiss
  • M. Melinda Pitts

Abstract

Using the Health and Retirement Survey and standard wage decomposition techniques, this paper finds that the difference in intermittent labor force participation between men and women accounts for 47 percent of the contribution to the wage gap of differences in observed characteristics. Not controlling for intermittent behavior results in too much importance being placed on gender differences in job characteristics.
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Suggested Citation

  • Julie L. Hotchkiss & M. Melinda Pitts, 2007. "The Role of Labor Market Intermittency in Explaining Gender Wage Differentials," American Economic Review, American Economic Association, vol. 97(2), pages 417-421, May.
  • Handle: RePEc:aea:aecrev:v:97:y:2007:i:2:p:417-421
    Note: DOI: 10.1257/aer.97.2.417
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    References listed on IDEAS

    as
    1. Julie L. Hotchkiss & M. Melinda Pitts, 2003. "Female labor force intermittency and current earnings: a switching regression model with unknown sample selection," FRB Atlanta Working Paper 2003-33, Federal Reserve Bank of Atlanta.
    2. Elaine Sorensen, 1993. "Continuous Female Workers: How Different Are They from Other Women?," Eastern Economic Journal, Eastern Economic Association, vol. 19(1), pages 15-32, Winter.
    3. James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
    4. Thomas DeLeire & Helen Levy, 2004. "Worker Sorting and the Risk of Death on the Job," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 925-954, October.
    5. Hotchkiss, Julie L, 1991. "The Definition of Part-Time Employment: A Switching Regression Model with Unknown Sample Selection," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(4), pages 899-917, November.
    6. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    7. Susan L. Averett & Julie L. Hotchkiss, 1996. "Discrimination in the Payment of Full-Time Wage Premiums," ILR Review, Cornell University, ILR School, vol. 49(2), pages 287-301, January.
    8. M. Melinda Pitts, 2002. "Why choose women's work if it pays less? A structural model of occupational choice," FRB Atlanta Working Paper 2002-30, Federal Reserve Bank of Atlanta.
    9. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
    10. Macpherson, David A & Hirsch, Barry T, 1995. "Wages and Gender Composition: Why Do Women's Jobs Pay Less?," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 426-471, July.
    11. Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
    12. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-247, February.
    13. Polachek, Solomon William, 1981. "Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 60-69, February.
    14. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    15. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    16. Winter-Ebmer, Rudolf & Zweimuller, Josef, 1992. "Occupational segregation and career advancement," Economics Letters, Elsevier, vol. 39(2), pages 229-234, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Julie L. Hotchkiss & M. Melinda Pitts & Mary Beth Walker, 2017. "Impact of first birth career interruption on earnings: evidence from administrative data," Applied Economics, Taylor & Francis Journals, vol. 49(35), pages 3509-3522, July.
    2. Robst, John, 2008. "Childhood sexual abuse and the gender wage gap," Economics Letters, Elsevier, vol. 99(3), pages 549-551, June.
    3. Enrico Ciavolino & Claudia Sunna & Paola Pascali & Mariangela Nitti, 2016. "Women resignation during maternal leave," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(4), pages 1747-1763, July.
    4. Julie L. Hotchkiss & M. Melinda Pitts, 2007. "Evidence of demand factors in the determination of the labor market intermittency penalty," FRB Atlanta Working Paper 2007-16, Federal Reserve Bank of Atlanta.
    5. Hotchkiss, Julie L. & Pitts, M. Melinda & Walker, Mary Beth, 2011. "To work or not to work: the economics of a mother's dilemma," FRB Atlanta Working Paper 2011-02, Federal Reserve Bank of Atlanta.
    6. Haile, Getinet Astatike, 2016. "Men, Women and Unions," IZA Discussion Papers 10438, Institute for the Study of Labor (IZA).
    7. Haile, Getinet Astatike, 2016. "Intergenerational Mobility in Income and Economic Status in Ethiopia," IZA Discussion Papers 10047, Institute for the Study of Labor (IZA).
    8. repec:spr:jopoec:v:30:y:2017:i:4:d:10.1007_s00148-017-0640-5 is not listed on IDEAS
    9. Joseph, Olivier & Pailhé, Ariane & Recotillet, Isabelle & Solaz, Anne, 2013. "The economic impact of taking short parental leave: Evaluation of a French reform," Labour Economics, Elsevier, vol. 25(C), pages 63-75.
    10. Julie L. Hotchkiss & M. Melinda Pitts & Mary Beth Walker, 2008. "Working with children? the probability of mothers exiting the workforce at time of birth," FRB Atlanta Working Paper 2008-08, Federal Reserve Bank of Atlanta.

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