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Wages and Participation

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  • Welch, Finis

Abstract

During the last twenty-five years, annual hours worked by prime aged men fell by the equivalent of six forty-hour workweeks. The reduction was more pronounced among those younger than among mid-age workers, among black men than among white men, and among those with less schooling. Thus hours worked not only fell but showed increased dispersion, increases that paralleled the growth in wage dispersion that has become so familiar to students of trends in wages. The argument advanced here is that the correspondence is not coincidental; the changes in hours worked are simply the labor supply responses that follow the changes in the structure of wages. Copyright 1997 by University of Chicago Press.

Suggested Citation

  • Welch, Finis, 1997. "Wages and Participation," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 77-103, January.
  • Handle: RePEc:ucp:jlabec:v:15:y:1997:i:1:p:s77-103
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    References listed on IDEAS

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    1. Sander, William & Krautmann, Anthony C, 1995. "Catholic Schools, Dropout Rates and Educational Attainment," Economic Inquiry, Western Economic Association International, vol. 33(2), pages 217-233, April.
    2. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
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    Citations

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    Cited by:

    1. Paul J. Devereux, 2003. "Changes in Male Labor Supply and Wages," ILR Review, Cornell University, ILR School, vol. 56(3), pages 409-428, April.
    2. Francine D. Blau & Lawrence M. Kahn, 2005. "Changes in the Labor Supply Behavior of Married Women: 1980-2000," NBER Working Papers 11230, National Bureau of Economic Research, Inc.
    3. Pourpourides, Panayiotis M., 2011. "Implicit contracts and the cyclicality of the skill-premium," Journal of Economic Dynamics and Control, Elsevier, vol. 35(6), pages 963-979, June.
    4. Lahiri, Kajal & Song, Jae & Wixon, Bernard, 2008. "A model of Social Security Disability Insurance using matched SIPP/Administrative data," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 4-20, July.
    5. Finis Welch, 2000. "Growth in Women's Relative Wages and in Inequality among Men: One Phenomenon or Two?," American Economic Review, American Economic Association, vol. 90(2), pages 444-449, May.
    6. Stephanie Aaronson, 2002. "The rise in lifetime earnings inequality among men," Finance and Economics Discussion Series 2002-21, Board of Governors of the Federal Reserve System (U.S.).
    7. David Black & Yi-Ping Tseng & Roger Wilkins, 2009. "Examining the Role of Demographic Change in the Decline in Male Employment in Australia: A Propensity Score Re-weighting Decomposition Approach," Melbourne Institute Working Paper Series wp2009n24, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    8. Gould, Eric D & Moav, Omer & Weinberg, Bruce A, 2001. "Precautionary Demand for Education, Inequality, and Technological Progress," Journal of Economic Growth, Springer, vol. 6(4), pages 285-315, December.
    9. Casey B. Mulligan & Yona Rubinstein, 2005. "Selection, Investment, and Women's Relative Wages Since 1975," NBER Working Papers 11159, National Bureau of Economic Research, Inc.
    10. Abowd, John M. & Kramarz, Francis & Margolis, David N. & Philippon, Thomas, 2000. "The Tail of Two Countries: Minimum Wages and Employment in France and the United States," IZA Discussion Papers 203, Institute for the Study of Labor (IZA).
    11. Casey B. Mulligan, 1997. "Pecuniary Incentives to Work in the U.S. during World War II," NBER Working Papers 6326, National Bureau of Economic Research, Inc.
    12. Francine D. Blau & Lawrence M. Kahn, 2007. "Changes in the Labor Supply Behavior of Married Women: 1980–2000," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 393-438.

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