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A Life Cycle Model of Labor Force Inequality

Author

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  • MARK D. HAYWARD

    (The Pennsylvania State University)

  • DANIEL T. LICHTER

    (The Pennsylvania State University)

Abstract

Prevalence measures of labor force activity unambiguously demonstrate inequality across population groups (e.g., education groups), but they cannot reveal the underlying stochastic processes generating inequality. In this article, the authors develop explicit life cycle measures of inequality that summarize the divergent stochastic processes defining group differences in labor force behavior. They focus specifically on educational differences in individuals' work and retirement experiences over the latter part of the career cycle. Their analytic approach is a Markov-based multistate life table, directly extending Clogg's life table model of labor force inequality. Analyses are based on data from the National Longitudinal Survey of Older Men, 1966-1983. The authors' approach demonstrates how prevalence measures of inequality as well as measures of life cycle inequality are generated by the underlying stochastic processes. Comparisons of the life cycle measures and prevalence measures illustrate the potentially divergent pictures of labor force inequality conveyed by the alternative measures.

Suggested Citation

  • Mark D. Hayward & Daniel T. Lichter, 1998. "A Life Cycle Model of Labor Force Inequality," Sociological Methods & Research, , vol. 26(4), pages 487-510, May.
    • Handle: RePEc:sae:somere:v:26:y:1998:i:4:p:487-510
    DOI: 10.1177/0049124198026004003
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    References listed on IDEAS

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    1. Mark Hayward & William Grady, 1990. "Work and Retirement Among a Cohort of Older Men in the United States, 1966–1983," Demography, Springer;Population Association of America (PAA), vol. 27(3), pages 337-356, August.
    2. Kenneth Land & Jack Guralnik & Dan Blazer, 1994. "Estimating Increment-Decrement Life Tables with Multiple Covariates from Panel Data: The Case of Active Life Expectancy," Demography, Springer;Population Association of America (PAA), vol. 31(2), pages 297-319, May.
    3. John Bound & Michael Schoenbaum & Timothy Waidmann, 1995. "Race and Education Differences in Disability Status and Labor Force Attachment in the Health and Retirement Survey," Journal of Human Resources, University of Wisconsin Press, vol. 30, pages 227-267.
    4. John Bound & Michael Schoenbaum & Timothy Waidmann, 1995. "Race and Education Differences in Disability Status and Labor Force Attachment," NBER Working Papers 5159, National Bureau of Economic Research, Inc.
    5. Welch, Finis, 1990. "The Employment of Black Men," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages 26-74, January.
    6. Andrei Rogers, 1992. "Heterogeneity and selection in multistate population analysis," Demography, Springer;Population Association of America (PAA), vol. 29(1), pages 31-38, February.
    7. David Moore & Mark Hayward, 1990. "Occupational careers and mortality of elderly men," Demography, Springer;Population Association of America (PAA), vol. 27(1), pages 31-53, February.
    8. Parsons, Donald O, 1980. "Racial Trends in Male Labor Force Participation," American Economic Review, American Economic Association, vol. 70(5), pages 911-920, December.
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    Cited by:

    1. Lorenti, Angelo & Dudel, Christian & Hale, Jo Mhairi & Myrskylä, Mikko, 2020. "Working and disability expectancies at older ages: the role of childhood circumstances and education," LSE Research Online Documents on Economics 106194, London School of Economics and Political Science, LSE Library.
    2. Dudel, Christian & López Gómez, María Andrée & Benavides, Fernando G. & Myrskylä, Mikko, 2018. "The length of working life in Spain: levels, recent trends, and the impact of the financial crisis," LSE Research Online Documents on Economics 86990, London School of Economics and Political Science, LSE Library.
    3. Christian Dudel & María Andrée López Gómez & Fernando G. Benavides & Mikko Myrskylä, 2018. "The Length of Working Life in Spain: Levels, Recent Trends, and the Impact of the Financial Crisis," European Journal of Population, Springer;European Association for Population Studies, vol. 34(5), pages 769-791, December.
    4. Jo M. Hale & Christian Dudel & Angelo Lorenti, 2020. "Cumulative disparities in the dynamics of working poverty for later-career U.S. workers (2002-2012)," MPIDR Working Papers WP-2020-028, Max Planck Institute for Demographic Research, Rostock, Germany.
    5. Hale, Jo Mhairi & Dudel, Christian & Lorenti, Angelo, 2020. "Cumulative disparities in the dynamics of working poverty for later-career U.S. workers (2002-2012)," SocArXiv xka5j, Center for Open Science.
    6. Lorenti, Angelo & Dudel, Christian & Myrskylä, Mikko, 2018. "The legacy of the great recession in Italy: a wider geographical, gender, and generational gap in working life expectancy," LSE Research Online Documents on Economics 88302, London School of Economics and Political Science, LSE Library.
    7. Angelo Lorenti & Christian Dudel & Mikko Myrskylä, 2019. "The Legacy of the Great Recession in Italy: A Wider Geographical, Gender, and Generational Gap in Working Life Expectancy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 283-303, February.
    8. Christian Dudel & Elke Loichinger & Sebastian Klüsener & Harun Sulak & Mikko Myrskylä, 2021. "The extension of late working life in Germany: trends, inequalities, and the East-West divide," MPIDR Working Papers WP-2021-018, Max Planck Institute for Demographic Research, Rostock, Germany.
    9. Mark Hayward & Melonie Heron, 1999. "Racial inequality in active life among adult americans," Demography, Springer;Population Association of America (PAA), vol. 36(1), pages 77-91, February.

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