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- Title
Expected Interruptions in Labour Force Participation and Sex-Related Differences in Earnings Growth.
- Authors
Weiss, Yoram; Gronau, Reuben
- Abstract
This article discusses expected interruptions in labour force participation and sex-related differences in earnings growth. The link binding participation and wages is the individual investment in himself. Investment in human capital on the job is one of the ways for an individual to increase his future wages. Labour force participation is a prerequisite for this kind of investment. Thus participation affects future wages which in turn affect future participation. Conversely future participation plans determine the utilization of human capital and therefore influences current investment decisions. An often-noted empirical regularity is the tendency of the sex-related earnings differentials to increase with potential work experience for at least the early phases of the work cycle. While the phenomenon has been observed in both cross-section and longitudinal data, a different explanation applies in each case. In cross-section data, as potential experience increases so does the likelihood of past breaks in experience.
- Subjects
INVESTMENTS; LABOR supply; WOMEN employees; INCOME; SEX discrimination in employment; HUMAN capital; LABOR economics; WAGES; INVESTMENT analysis
- Publication
Review of Economic Studies, 1981, Vol 48, Issue 4, p607
- ISSN
0034-6527
- Publication type
Article
- DOI
10.2307/2297200