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The Usefulness of Predicted Values for Prior Work Experience in Analyzing Labor Market Outcomes for Women


  • Randall K. Filer


This paper proposes an improved way of treating experience in estimating wage equations for women when measures of actual experience are lacking. It shows that using a predicted value for experience from occupation-specific equations estimated on another data set containing actual experience is preferable to using either potential experience (time since school leaving) or predicted experience without taking account of the woman's occupation. Results also show that the use of potential experience may bias the estimated impact of factors such as race and schooling on women's wages.

Suggested Citation

  • Randall K. Filer, 1993. "The Usefulness of Predicted Values for Prior Work Experience in Analyzing Labor Market Outcomes for Women," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 519-537.
  • Handle: RePEc:uwp:jhriss:v:28:y:1993:i:3:p:519-537

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    References listed on IDEAS

    1. Anders Bohlmark & Matthew J. Lindquist, 2006. "Life-Cycle Variations in the Association between Current and Lifetime Income: Replication and Extension for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 879-900, October.
    2. Douglas Almond & Lena Edlund & Mårten Palme, 2009. "Chernobyl's Subclinical Legacy: Prenatal Exposure to Radioactive Fallout and School Outcomes in Sweden," The Quarterly Journal of Economics, Oxford University Press, vol. 124(4), pages 1729-1772.
    3. Bhuller, Manudeep & Mogstad, Magne & Salvanes, Kjell G., 2011. "Life-Cycle Bias and the Returns to Schooling in Current and Lifetime Earnings," IZA Discussion Papers 5788, Institute for the Study of Labor (IZA).
    4. Achyuta Adhvaryu & Anant Nyshadham, 2011. "Endowments and Investment within the Household: Evidence from Iodine Supplementation in Tanzania," Working Papers 998, Economic Growth Center, Yale University.
    5. Björklund, Anders & Jäntti, Markus & Lindquist, Matthew J., 2009. "Family background and income during the rise of the welfare state: Brother correlations in income for Swedish men born 1932-1968," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 671-680, June.
    6. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December.
    7. Marianne P. Bitler & Janet Currie, 2005. "Does WIC work? The effects of WIC on pregnancy and birth outcomes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(1), pages 73-91.
    8. Douglas Almond & Janet Currie, 2011. "Killing Me Softly: The Fetal Origins Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 153-172, Summer.
    9. Beaudry, Paul & DiNardo, John, 1991. "The Effect of Implicit Contracts on the Movement of Wages over the Business Cycle: Evidence from Micro Data," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 665-688, August.
    10. Jere R. Behrman & Mark R. Rosenzweig, 2004. "Returns to Birthweight," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 586-601, May.
    11. Douglas Almond & Bhashkar Mazumder, 2011. "Health Capital and the Prenatal Environment: The Effect of Ramadan Observance during Pregnancy," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 56-85, October.
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    Cited by:

    1. J.G. Hirschberg & D.J. Slottje, 2002. "Bounding Estimates of Wage Discrimination," Department of Economics - Working Papers Series 854, The University of Melbourne.
    2. Anh T. Le & Paul W. Miller, 2001. "The Persistence of the Female Wage Disadvantage," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(1), pages 33-52.
    3. Susan Averett & Sanders Korenman, 1996. "The Economic Reality of the Beauty Myth," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 304-330.
    4. Munasinghe, Lalith & Reif, Tania & Henriques, Alice, 2008. "Gender gap in wage returns to job tenure and experience," Labour Economics, Elsevier, vol. 15(6), pages 1296-1316, December.
    5. Averett, Susan L. & Burton, Mark L., 1996. "College attendance and the college wage premium: Differences by gender," Economics of Education Review, Elsevier, vol. 15(1), pages 37-49, February.
    6. Bacolod, Marigee & Joseph Hotz, V., 2006. "Cohort changes in the transition from school to work: Evidence from three NLS surveys," Economics of Education Review, Elsevier, vol. 25(4), pages 351-373, August.
    7. Holly Monti & Lori Reeder & Martha Stinson, 2018. "How long do early career decisions follow women? The impact of industry and firm size history on the gender and motherhood wage gaps," Working Papers 18-05, Center for Economic Studies, U.S. Census Bureau.
    8. Marigee Bacolod & V. Joseph Hotz, 2005. "Cohort Changes in the Transition from School to Work: What Changed and What Consequences Did it have for Wages?," Working Papers 050618, University of California-Irvine, Department of Economics.
    9. Stephen L. Ross, 2003. "What Is Known about Testing for Discrimination: Lessons Learned by Comparing across Different Markets," Working papers 2003-21, University of Connecticut, Department of Economics, revised Nov 2003.
    10. Meng, Xin, 2004. "Gender earnings gap: the role of firm specific effects," Labour Economics, Elsevier, vol. 11(5), pages 555-573, October.
    11. Michelle Budig & Irene Böckmann & Joya Misra, 2010. "The Motherhood Penalty in Cross-National Perspective: The Importance of Work-Family Policies and Cultural Attitudes," LIS Working papers 542, LIS Cross-National Data Center in Luxembourg.
    12. Christine Siegwarth Meyer & Swati Mukerjee, 2007. "Investigating Dual Labor Market Theory For Women," Eastern Economic Journal, Eastern Economic Association, vol. 33(3), pages 301-316, Summer.
    13. Trejo, Stephen J, 1997. "Why Do Mexican Americans Earn Low Wages?," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1235-1268, December.
    14. repec:zbw:espost:171453 is not listed on IDEAS
    15. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS
    16. Susan Averett & Sharon Dalessandro, 2001. "Racial and Gender Differences in the Returns to 2-Year and 4-Year Degrees," Education Economics, Taylor & Francis Journals, vol. 9(3), pages 281-292.

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