EconPapers    
Economics at your fingertips  
 

Home production and discrimination: a joint explanation for recent trends of gender differentials in education and in the labor market

Andrea Moro () and Luca Flabbi

No 724, 2006 Meeting Papers from Society for Economic Dynamics

Abstract: The two main trends in gender differentials in the last decade suggest an apparently contradictory picture: women still experience a significant negative differential in wages but not in education, where they moved from a negative to a positive differential. We propose and estimate a model where employer’s discrimination is allow to change over-time. Females have the same preferences as males, and, other things being equal, would, on average, make the same human capital investment and labor market decisions. However, because of an (endogenous) comparative advantage in child rearing, more women choose to suspend labor market attachment than their male partners in their prime age. Hence, because of a standard statistical discrimination argument, they receive lower labor market outcomes than males. The only way they can compensate for the loss arising from statistical discrimination is to choose higher investment in human capital, generating equilibria where female average human capital investment is higher than males'. If discrimination is too high, however, no reasonable amount of higher human capital investment can compensate for the difference and more women choose to specialize in home production

Keywords: Gender discrimination; Education gap (search for similar items in EconPapers)
JEL-codes: J7 (search for similar items in EconPapers)
Date: 2006-12-03
References: Add references at CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed006:724

Access Statistics for this paper

More papers in 2006 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2020-03-29
Handle: RePEc:red:sed006:724