Heterogeneity in Returns to Work Experience: A Dynamic Model of Female Labor Force Participation

Ken Yamada

Labor Economics Working Papers from East Asian Bureau of Economic Research

Abstract: This paper provides structural estimates of heterogeneous returns to work experience for Japanese married women. A dynamic model of labor force participation is used to account for dynamic self-selection into employment. Heterogeneity is incorporated into the model in a way that allows for the multidimensional skill heterogeneity in employment and home production and for the individual-specific slope and curvature of experience effect on earnings. The structural estimates and their comparison to the reduced-form estimates highlight the importance of dynamic self-selection into employment and heterogeneity in returns to work experience.

Keywords: heterogeneous returns; Japan; labour; multidimensional skill heterogeneity in employment; structual estimates (search for similar items in EconPapers)
JEL-codes: J01 J31 (search for similar items in EconPapers)
Date: 2009-01
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Working Paper: Heterogeneity in Returns to Work Experience: A Dynamic Model of Female Labor Force Participation (2009)
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