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Explaining Age and Gender Differences in Employment Rates: A Labor Supply Side Perspective

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  • Stephan Humpert

    () (Institute of Economics, Leuphana University Lueneburg, Germany)

  • Christian Pfeifer

    () (Institute of Economics, Leuphana University Lueneburg, Germany)

Abstract

This paper takes a labor supply perspective (neoclassical labor supply, job search) to explain the lower employment rates of older workers and women. The basic rationale is that workers choose non-employed if their reservation wages are larger than the offered wages. Whereas the offered wages depend on workers' productivity and firms' decisions, reservation wages are largely determined by workers' endowments and preferences for leisure. To shed some empirical light on this issue, we use German survey data to analyze age and gender differences in reservation and entry wages, preferred and actual working hours, and satisfaction with leisure and work.

Suggested Citation

  • Stephan Humpert & Christian Pfeifer, 2011. "Explaining Age and Gender Differences in Employment Rates: A Labor Supply Side Perspective," Working Paper Series in Economics 214, University of Lüneburg, Institute of Economics.
  • Handle: RePEc:lue:wpaper:214
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    References listed on IDEAS

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    Cited by:

    1. repec:spr:jlabre:v:38:y:2017:i:2:d:10.1007_s12122-017-9247-6 is not listed on IDEAS
    2. Pfeifer, Christian & Wagner, Joachim, 2012. "Is Innovative Firm Behavior Correlated with Age and Gender Composition of the Workforce? Evidence from a New Type of Data for German Enterprises," IZA Discussion Papers 7050, Institute for the Study of Labor (IZA).
    3. Caliendo, Marco & Lee, Wang-Sheng & Mahlstedt, Robert, 2014. "The Gender Wage Gap: Does a Gender Gap in Reservation Wages Play a Part?," IZA Discussion Papers 8305, Institute for the Study of Labor (IZA).
    4. Christian Pfeifer & Joachim Wagner, 2012. "Age and gender composition of the workforce, productivity and profits: Evidence from a new type of data for German enterprises," Working Paper Series in Economics 232, University of Lüneburg, Institute of Economics.
    5. Christian Pfeifer & Joachim Wagner, 2014. "Age and gender effects of workforce composition on productivity and profits: Evidence from a new type of data for German enterprises," Contemporary Economics, University of Finance and Management in Warsaw, vol. 8(1), March.
    6. Stephan Humpert, 2012. "Age and Gender Differences in Job Opportunities," Working Paper Series in Economics 235, University of Lüneburg, Institute of Economics.

    More about this item

    Keywords

    Age; Family gap; Gender; Job search; Labor supply; Reservation wages;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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