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Explaining the Labor Force Participation of Women 20-24

Between about the mid 1960s and the late 1970s there was a remarkable rise in the labor force participation of women and then a leveling off that has persisted through the mid 1990s. This paper attempts to explain the labor force participation of women 20-24 over this period. A "relative income" variable is constructed based on Easterlin's (1980) relative income hypothesis, and this is found to be an important explanatory variable. Easterlin's "cohort wage" hypothesis is also used in the analysis. The basic equation estimated does very well in various tests that were performed on it, and it appears to explain well the rapid rise and then leveling off of the labor force participation of young women.

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File URL: http://cowles.econ.yale.edu/P/cd/d11a/d1116.pdf
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Paper provided by Cowles Foundation for Research in Economics, Yale University in its series Cowles Foundation Discussion Papers with number 1116.

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Length: 24 pages
Date of creation: Mar 1996
Date of revision:
Handle: RePEc:cwl:cwldpp:1116
Contact details of provider: Postal: Yale University, Box 208281, New Haven, CT 06520-8281 USA
Phone: (203) 432-3702
Fax: (203) 432-6167
Web page: http://cowles.econ.yale.edu/

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Order Information: Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA

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  1. Andrews, Donald W K & Ploberger, Werner, 1994. "Optimal Tests When a Nuisance Parameter Is Present Only under the Alternative," Econometrica, Econometric Society, vol. 62(6), pages 1383-1414, November.
  2. Diane J. Macunovich, 1995. "The Butz-Ward Fertility Model in the Light of More Recent Data," Journal of Human Resources, University of Wisconsin Press, vol. 30(2), pages 229-255.
  3. Finis Welch, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," UCLA Economics Working Papers 146, UCLA Department of Economics.
  4. Fair, Ray C & Dominguez, Kathryn M, 1991. "Effects of the Changing U.S. Age Distribution on Macroeconomic Equations," American Economic Review, American Economic Association, vol. 81(5), pages 1276-94, December.
  5. Thomas Mroz, . "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," University of Chicago - Population Research Center 84-8, Chicago - Population Research Center.
  6. Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204 Elsevier.
  7. Welch, Finis, 1979. "Effects of Cohort Size on Earnings: The Baby Boom Babies' Financial Bust," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S65-97, October.
  8. Butz, William P & Ward, Michael P, 1979. "The Emergence of Countercyclical U.S. Fertility," American Economic Review, American Economic Association, vol. 69(3), pages 318-28, June.
  9. Michael L. Wachter, 1977. "Intermediate Swings in Labor-Force Participation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 8(2), pages 545-576.
  10. Barbara Devaney, 1983. "An analysis of variations in U. S. fertility and female labor force participation trends," Demography, Springer, vol. 20(2), pages 147-161, May.
  11. Blau, Francine D & Grossberg, Adam J, 1991. "Real Wage and Employment Uncertainty and the Labor Force Participation Decisions of Married Women," Economic Inquiry, Western Economic Association International, vol. 29(4), pages 678-95, October.
  12. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July.
  13. Schapiro, M.O., 1988. "Socio-Economic Effects Of Relative Income And Relative Cohort Size," Department of Economics Working Papers 113, Department of Economics, Williams College.
  14. Wachter, Michael L, 1972. "A Labor Supply Model for Secondary Workers," The Review of Economics and Statistics, MIT Press, vol. 54(2), pages 141-51, May.
  15. O'Neill, June A, 1981. "A Time-Series Analysis of Women's Labor Force Participation," American Economic Review, American Economic Association, vol. 71(2), pages 76-80, May.
  16. Smith, James P & Ward, Michael P, 1985. "Time-Series Growth in the Female Labor Force," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S59-90, January.
  17. Macunovich, D.J., 1996. "Relative Income and Price of Time: Exploring their effcts on U.S. Fertility and Female Labor Force Participation, 1963-1993," Department of Economics Working Papers 174, Department of Economics, Williams College.
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