The Return to Hours Worked Within and Across Occupations: Implications for the Gender Wage Gap / Jeffrey T. Denning, Brian Jacob, Lars Lefgren, Christian vom Lehn.

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Denning, Jeffrey T

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w25739.Publication details: Cambridge, Mass. National Bureau of Economic Research 2019.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: We document two empirical phenomena. First, the observational wage returns to hours worked within occupation is small, and even negative in some specifications. Second, the wage return to average hours worked across occupations is large. We develop a conceptual framework that reconciles these facts, where the key insight is that workers choose jobs as a bundle of compensation and expected hours worked. As an example, we apply this framework to the gender wage gap and show how it can explain the view expressed in recent work that hours differences between men and women represent a large and growing component of the gender wage gap.

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April 2019.

We document two empirical phenomena. First, the observational wage returns to hours worked within occupation is small, and even negative in some specifications. Second, the wage return to average hours worked across occupations is large. We develop a conceptual framework that reconciles these facts, where the key insight is that workers choose jobs as a bundle of compensation and expected hours worked. As an example, we apply this framework to the gender wage gap and show how it can explain the view expressed in recent work that hours differences between men and women represent a large and growing component of the gender wage gap.