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Female labour force intermittency and current earnings: switching regression model with unknown sample selection

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  • Julie Hotchkiss
  • M. Melinda Pitts

Abstract

Using the Health and Retirement Survey from the USA, this paper finds a 16% selectivity-corrected wage penalty among women who engage in intermittent labour market activity. This penalty is experienced at a low level of intermittent activity, but appears to not play an important role in a woman's decision to undertake such activity. In addition, employer preferences appear to play a larger role than human capital atrophy in the determination of the wage penalty.

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  • Julie Hotchkiss & M. Melinda Pitts, 2005. "Female labour force intermittency and current earnings: switching regression model with unknown sample selection," Applied Economics, Taylor & Francis Journals, vol. 37(5), pages 545-560.
  • Handle: RePEc:taf:applec:v:37:y:2005:i:5:p:545-560
    DOI: 10.1080/0003684042000307003
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    3. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
    4. Tang, Mingzhe & Coulson, N. Edward, 2017. "The impact of China's housing provident fund on homeownership, housing consumption and housing investment," Regional Science and Urban Economics, Elsevier, vol. 63(C), pages 25-37.
    5. 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.
    6. Julie Hotchkiss & M. Melinda Pitts, 2010. "The demand side of the penalty for intermittent labour market behaviour," Applied Economics Letters, Taylor & Francis Journals, vol. 17(6), pages 531-535.
    7. Julie L. Hotchkiss, 2005. "What’s up with the decline in female labor force participation?," FRB Atlanta Working Paper 2005-18, Federal Reserve Bank of Atlanta.
    8. Das, Tirthatanmoy & Polachek, Solomon, 2017. "Micro Foundations of Earnings Differences," IZA Discussion Papers 10922, Institute of Labor Economics (IZA).
    9. 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.
    10. 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.
    11. James Gander, 2009. "Equity valuation under Bull and Bear market regimes in South East Asia firms: a switching regression approach," Applied Economics, Taylor & Francis Journals, vol. 43(7), pages 837-844.
    12. 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.
    13. Julie L. Hotchkiss & M. Melinda Pitts & Mary Beth Walker, 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.

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