Real Wage and Employment Uncertainty and the Labor Force Participation Decisions of Married Women

Francine Blau and Adam Grossberg

Economic Inquiry, 1991, vol. 29, issue 4, 678-95

Abstract: This paper argues that an important factor in a married woman's decision to enter the labor force is the degree of uncertainty associated with expectations of future wages and (husband's) income, and that high levels of uncertainty during the 1970s may have contributed substantially to the growth in participation in that decade. The authors apply a model of autoregressive conditional heteroskedasticity to aggregate time-series data to measure the level of uncertainty in each period. Their estimates support their hypothesis that the level of uncertainty is an important determinant of labor-force participation for married women. Copyright 1991 by Oxford University Press.

Date: 1991
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