Sex-Related Wage Differentials and Women's Interrupted Labor Careers--The Chicken or the Egg
Wage differentials between men and women are often attributed to differences in on-the-job training-the lower investment of women being explained by their plans to interrupt their careers for family reasons. Career interruptions, however, are often explained by low wages. To trace this interrelationship, the author adopts a simultaneous equations approach-trying to explain wages, planned separations, on-the-job training, and the skill intensity of the job simultaneously. Skill intensity is found to be a key variable in the explanation of the wage differential. Traditional theory is hard pressed to explain the sex-related differences in this variable. Copyright 1988 by University of Chicago Press.
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