Wives' Labor Force Participation, Wage Differentials and Family Income Inequality: The Israeli Experience / Reuben GRonau.

By:

GRonau, Reuben

Contributor(s):

National Bureau of Economic Research

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w0668.Publication details: Cambridge, Mass. National Bureau of Economic Research 1981.Description: 1 online resource: illustrations (black and white)Subject(s):

C - Mathematical and Quantitative Methods

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: Recent decades have witnessed a sharp increase in the labor force participation of married women. The paper investigates the effect of wives' earnings on family income distribution. This effect depends on the in-equality of women's earnings as compared with other sources of income, on the correlation between the two and on the woman's share in total income. These in turn depend on participation patterns, labor supply and sex related wage differentials. In general, only the correlation between the various sources of income has an unambiguous effect on inequality, the effects of the other factors depending on the specific values of the parameters. In Israel where there are sharp differences in participation rates of married women and in sex related earnings differentials by schooling group, wives' earnings reduce total family income inequality, increasing at the same time the between-group (ethnic and schooling group) variability. The paper examines the effect of changes in the participation rate and the wife-husband earnings gap on family income inequality. It compares the effect of wives' earnings with other income sources (e.g., transfers) and examines the implication of separate tax returns for inequality.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w0668 (Browse shelf(Opens below))	Not For Loan

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Previous	nber w0665 Business Cycles and Growth: Some Reflections and Measures /	nber w0666 Currency Baskets and Real Effective Exchange Rates /	nber w0667 Expected Interruptions in Labor Force Participation and Sex Related Differences in Earnings Growth /	nber w0668 Wives' Labor Force Participation, Wage Differentials and Family Income Inequality: The Israeli Experience /	nber w0669 The Federal Attack on Labor Market Discrimination: The Mouse that Roared? /	nber w0670 Indexing and Inflation /	nber w0671 Training, Tenure, and Productivity /	Next

April 1981.

Recent decades have witnessed a sharp increase in the labor force participation of married women. The paper investigates the effect of wives' earnings on family income distribution. This effect depends on the in-equality of women's earnings as compared with other sources of income, on the correlation between the two and on the woman's share in total income. These in turn depend on participation patterns, labor supply and sex related wage differentials. In general, only the correlation between the various sources of income has an unambiguous effect on inequality, the effects of the other factors depending on the specific values of the parameters. In Israel where there are sharp differences in participation rates of married women and in sex related earnings differentials by schooling group, wives' earnings reduce total family income inequality, increasing at the same time the between-group (ethnic and schooling group) variability. The paper examines the effect of changes in the participation rate and the wife-husband earnings gap on family income inequality. It compares the effect of wives' earnings with other income sources (e.g., transfers) and examines the implication of separate tax returns for inequality.