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Why are Well-educated Women not Full-timers?

  • Helena Skyt, Nielsen

    (Department of Economics, Aarhus School of Business)

  • Verner, Mette

    ()

    (Department of Economics, Aarhus School of Business)

A high proportion of well-educated women in Denmark chooses to work part-time or completely stay outside the labour market. We analyse this phenomenon in a discrete choice dynamic programming framework, taking the potentially endogenous effect of work experience on annual earnings into account. The main findings are that the disutility of full-time work increases with obtained work experience and education. Only the level of returns to these variables serves to outweigh this effect, and results in a high degree of persistence in the full-time participation pattern. Simulation reveals that the participation pattern is significantly affected by changing returns to skills.

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Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 03-8.

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Length: 30 pages
Date of creation: 01 Aug 2003
Date of revision:
Handle: RePEc:hhs:aareco:2003_008
Note: Published in Danish Journal of Economics, vol. 144(1), pp43-74, 2006
Contact details of provider: Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx

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  1. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier.
  2. Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, . "Does the Gap in Family-Friendly Policies Drive the Family Gap?," Economics Working Papers 2003-1, School of Economics and Management, University of Aarhus.
  3. Dex, Shirley, et al, 1995. "Cross-National Comparisons of the Labour Force Participation of Women Married to Unemployed Men," Oxford Economic Papers, Oxford University Press, vol. 47(4), pages 611-35, October.
  4. Michael P. Keane & Kenneth I. Wolpin, 1995. "The career decisions of young men," Working Papers 559, Federal Reserve Bank of Minneapolis.
  5. Zvi Eckstein & Kenneth I. Wolpin, 1999. "Why Youths Drop Out of High School: The Impact of Preferences, Opportunities, and Abilities," Econometrica, Econometric Society, vol. 67(6), pages 1295-1340, November.
  6. Heckman, James J & MaCurdy, Thomas, 1982. "Corrigendum on a Life Cycle Model of Female Labour Supply," Review of Economic Studies, Wiley Blackwell, vol. 49(4), pages 659-60, October.
  7. Eckstein, Zvi & Wolpin, Kenneth I, 1989. "Dynamic Labour Force Participation of Married Women and Endogenous Work Experience," Review of Economic Studies, Wiley Blackwell, vol. 56(3), pages 375-90, July.
  8. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-21, May.
  9. Heckman, James J & Macurdy, Thomas E, 1980. "A Life Cycle Model of Female Labour Supply," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 47-74, January.
  10. Marco Francesconi, 2002. "A Joint Dynamic Model of Fertility and Work of Married Women," Journal of Labor Economics, University of Chicago Press, vol. 20(2), pages 336-380, Part.
  11. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
  12. Nielsen, H.S. & Rosholm, M., 1997. "The Incidence of Unemployment: Identifying Quit and Layoffs," Papers 97-15, Centre for Labour Market and Social Research, Danmark-.
  13. Dean R. Hyslop, 1999. "State Dependence, Serial Correlation and Heterogeneity in Intertemporal Labor Force Participation of Married Women," Econometrica, Econometric Society, vol. 67(6), pages 1255-1294, November.
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