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Female labor force intermittency and current earnings: a switching regression model with unknown sample selection

  • Julie L. Hotchkiss
  • M. Melinda Pitts

Using the Health and Retirement Survey, this paper finds a 16 percent selectivity-corrected wage penalty among women who engage in intermittent labor market activity. This penalty is experienced at a low level of intermittent activity but appears not to play an important role in a woman’s decision to undertake such activity. In addition, employer preferences appear to play a larger role than human capital atrophy in the determination of the wage penalty.

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Paper provided by Federal Reserve Bank of Atlanta in its series FRB Atlanta Working Paper with number 2003-33.

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Date of creation: 2003
Date of revision:
Handle: RePEc:fip:fedawp:2003-33
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  1. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
  2. Honda, Yuzo, 1982. "On Tests of Equality between Sets of Coefficients in Two Linear Regressions When Disturbance Variances Are Unequal," The Manchester School of Economic & Social Studies, University of Manchester, vol. 50(2), pages 116-25, June.
  3. Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
  4. William T. Dickens & Kevin Lang, 1984. "A Test of Dual Labor Market Theory," NBER Working Papers 1314, National Bureau of Economic Research, Inc.
  5. Hotchkiss, Julie L. & Moore, Robert E. & Rockel, Mark, 1994. "Export expansion and growth at different stages of development," MPRA Paper 9320, University Library of Munich, Germany.
  6. Rummery, Sarah, 1992. "The Contribution of Intermittent Labour Force Participation to the Gender Wage Differential," The Economic Record, The Economic Society of Australia, vol. 68(203), pages 351-64, December.
  7. Field, Elizabeth B, 1988. "The Relative Efficiency of Slavery Revisited: A Translog Production Function Approach," American Economic Review, American Economic Association, vol. 78(3), pages 543-49, June.
  8. Susan L. Averett & Julie L. Hotchkiss, 1996. "Discrimination in the payment of full-time wage premiums," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(2), pages 287-301, January.
  9. James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
  10. Shelley Phipps & Peter Burton & Lynn Lethbridge, 2001. "In and out of the labour market: long-term income consequences of child-related interruptions to women's paid work," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 411-429, May.
  11. Idson, Todd L & Feaster, Daniel J, 1990. "A Selectivity Model of Employer-Size Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages 99-122, January.
  12. Silber, William L, 1974. "The Market for Federal Agency Securities: Is There an Optimum Size of Issue?," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 14-22, February.
  13. Yoshio Higuchi & Jane Waldfogel & Masahiro Abe, 1999. "Family leave policies and women's retention after childbirth: Evidence from the United States, Britain, and Japan," Journal of Population Economics, Springer, vol. 12(4), pages 523-545.
  14. Kajal Lahiri & Jae G. Song, 2000. "The effect of smoking on health using a sequential self-selection model," Health Economics, John Wiley & Sons, Ltd., vol. 9(6), pages 491-511.
  15. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  16. Hotchkiss, Julie L, 1991. "The Definition of Part-Time Employment: A Switching Regression Model with Unknown Sample Selection," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(4), pages 899-917, November.
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