Expected Interruptions in Labor Force Participation and Sex Related Differences in Earnings Growth / Yoram Weiss.

By:

Weiss, Yoram

Contributor(s):

National Bureau of Economic Research

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w0667.Publication details: Cambridge, Mass. National Bureau of Economic Research 1981.Description: 1 online resource: illustrations (black and white)Subject(s):

J - Labor and Demographic Economics

Online resources:

Available additional physical forms:

Hardcopy version available to institutional subscribers

Abstract: The paper analyzes the joint determination of wives' earnings and labor force participation over the life cycle given the interruptions in wives' work careers. The interruptions affect the profitability of the investment in human capital, which in turn determines earnings. The earnings prospects feed back into the participation decision, namely, the decision whether and for how long to drop out of the labor force. The formal analysis compares the age-earnings profiles of persons who drop out of the labor force with those who do not during the pre- and post-interruption period. The comparison is carried out where interruptions are assumed to be exogenous and when they are endogenous. The effect of productivity at home, the initial stock of human capital and its rental value on the length of the interruption is investigated.

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Working Paper	Biblioteca Digital	Colección NBER	nber w0667 (Browse shelf(Opens below))	Not For Loan

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Previous	nber w0664 Profitability and Stability in International Currency Markets /	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 /	Next

April 1981.

The paper analyzes the joint determination of wives' earnings and labor force participation over the life cycle given the interruptions in wives' work careers. The interruptions affect the profitability of the investment in human capital, which in turn determines earnings. The earnings prospects feed back into the participation decision, namely, the decision whether and for how long to drop out of the labor force. The formal analysis compares the age-earnings profiles of persons who drop out of the labor force with those who do not during the pre- and post-interruption period. The comparison is carried out where interruptions are assumed to be exogenous and when they are endogenous. The effect of productivity at home, the initial stock of human capital and its rental value on the length of the interruption is investigated.