Expected Interruptions in Labor Force Participation and Sex Related Differences in Earnings Growth

33 Pages Posted: 28 Jun 2001 Last revised: 30 Oct 2022

See all articles by Yoram Weiss

Yoram Weiss

Tel Aviv University - Eitan Berglas School of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Reuben Gronau

Hebrew University of Jerusalem - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: April 1981

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.

Suggested Citation

Weiss, Yoram and Gronau, Reuben, Expected Interruptions in Labor Force Participation and Sex Related Differences in Earnings Growth (April 1981). NBER Working Paper No. w0667, Available at SSRN: https://ssrn.com/abstract=275414

Yoram Weiss (Contact Author)

Tel Aviv University - Eitan Berglas School of Economics ( email )

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National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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Reuben Gronau

Hebrew University of Jerusalem - Department of Economics ( email )

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Jerusalem, 91905
Israel
972-2-588-3145 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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