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Heterogeneity in Returns to Work Experience : A Dynamic Model of Female Labor Force Participation

Author

Listed:
  • Ken Yamada

    (Singapore Management University)

Abstract

This paper provides structural estimates of heterogeneous returns to work experience for Japanese married women. A dynamic model of labor force participation is used to account for dynamic self-selection into employment. Heterogeneity is incorporated into the model in a way that allows for the multidimensional skill heterogeneity in employment and home production and for the individual-specific slope and curvature of experience effect on earnings. The structural estimates and their comparison to the reduced-form estimates highlight the importance of dynamic self-selection into employment and heterogeneity in returns to work experience.

Suggested Citation

  • Ken Yamada, 2009. "Heterogeneity in Returns to Work Experience : A Dynamic Model of Female Labor Force Participation," Labor Economics Working Papers 23048, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:laborw:23048
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    File URL: http://www.eaber.org/node/23048
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    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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