Search Results

Author: Erosa, Andres
Resulting in 2 citations.
1. Erosa, Andres
Fuster, Luisa
Restuccia, Diego
A Quantitative Theory of the Gender Gap in Wages
Working Paper 05-09, Federal Reserve Bank of Richmond and University of Toronto, September 2005.
Also: http://www.richmondfed.org/publications/economic_research/working_papers/pdfs/wp05-9.pdf
Cohort(s): NLSY79
Publisher: Federal Reserve Bank of Richmond
Keyword(s): Birth Rate; Fertility; Human Capital Theory; Maternal Employment; Wage Gap; Wage Models; Wage Theory; Wages, Men; Wages, Women

Permission to reprint the abstract has not been received from the publisher.

Using panel data from the National Longitudinal Survey of Youth (NLSY), we document that gender differences in wages almost double during the first 20 years of labor market experience and that there are substantial gender differences in employment and hours of work during the life cycle. A large portion of gender differences in labor market attachment can be traced to the impact of children on the labor supply of women. We develop a quantitative life-cycle model of fertility, labor supply, and human capital accumulation decisions. We use this model to assess the role of fertility on gender differences in labor supply and wages over the life cycle. In our model, fertility lowers the lifetime intensity of market activity, reducing the incentives for human capital accumulation and wage growth over the life cycle of females relative to males. We calibrate the model to panel data of men and to fertility and child related labor market histories of women. We find that fertility accounts for most of the gender differences in labor supply and wages during the life cycle documented in the NLSY data.
Bibliography Citation
Erosa, Andres, Luisa Fuster and Diego Restuccia. "A Quantitative Theory of the Gender Gap in Wages." Working Paper 05-09, Federal Reserve Bank of Richmond and University of Toronto, September 2005.
2. Erosa, Andres
Fuster, Luisa
Restuccia, Diego
A Quantitative Theory of the Gender Gap in Wages
European Economic Review 85 (June 2016): 165-187.
Also: http://www.sciencedirect.com/science/article/pii/S001429211630023X
Cohort(s): NLSY79
Publisher: Elsevier
Keyword(s): Children; Gender Differences; Human Capital; Wage Gap; Work Hours

This paper measures how much of the gender wage gap over the life cycle is due to the fact that working hours are lower for women than for men. We build a quantitative theory of fertility, labor supply, and human capital accumulation decisions to measure gender differences in human capital investments over the life cycle. We assume that there are no gender differences in the human capital technology and calibrate this technology using wage-age profiles of men. The calibration of females assumes that children involves a forced reduction in hours of work that falls on females rather than on males and that there is an exogenous gender gap in hours of work. We find that our theory accounts for all of the increase in the gender wage gap over the life cycle in the NLSY79 data. The impact of children on the labor supply of females accounts for 56% and 45% of the increase in the gender wage gap over the life cycle among non-college and college females, while the rest is due to the exogenous gender differences in hours of work.
Bibliography Citation
Erosa, Andres, Luisa Fuster and Diego Restuccia. "A Quantitative Theory of the Gender Gap in Wages." European Economic Review 85 (June 2016): 165-187.