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An accounting exercise for the shift in life-cycle employment profiles of married women born between 1940 and 1960

An accounting exercise for the shift in life-cycle employment profiles of married women born... Life-cycle employment profiles of married women born between 1940 and 1960 shifted upwards and became flatter. We calibrate a dynamic life-cycle model of employment decisions of married women to assess the quantitative importance of three competing explanations of the change in employment profiles: the decrease and delay in fertility, the increase in relative wages of women to men, and the decline in child-care costs. We find that the decrease and delay in fertility and the decline in child-care cost affect employment very early in life, while increases in relative wages affect employment increasingly with age. Changes in relative wages, in particular returns to experience, account for the bulk (67 percent) of changes in life-cycle employment of married women. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal for Labour Market Research Springer Journals

An accounting exercise for the shift in life-cycle employment profiles of married women born between 1940 and 1960

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Publisher
Springer Journals
Copyright
Copyright © 2013 by Institut für Arbeitsmarkt- und Berufsforschung
Subject
Economics / Management Science; Labor Economics; Sociology, general; Human Resource Management; Economic Policy; Regional/Spatial Science; Population Economics
ISSN
1614-3485
eISSN
1867-8343
DOI
10.1007/s12651-013-0130-5
Publisher site
See Article on Publisher Site

Abstract

Life-cycle employment profiles of married women born between 1940 and 1960 shifted upwards and became flatter. We calibrate a dynamic life-cycle model of employment decisions of married women to assess the quantitative importance of three competing explanations of the change in employment profiles: the decrease and delay in fertility, the increase in relative wages of women to men, and the decline in child-care costs. We find that the decrease and delay in fertility and the decline in child-care cost affect employment very early in life, while increases in relative wages affect employment increasingly with age. Changes in relative wages, in particular returns to experience, account for the bulk (67 percent) of changes in life-cycle employment of married women.

Journal

Journal for Labour Market ResearchSpringer Journals

Published: Mar 22, 2013

References