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Labor Force Participation Over the Life Course: The Long-Term Effects of Employment Trajectories on Wages and the Gendered Payoff to Employment

Author

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  • Katherine Weisshaar

    (University of North Carolina at Chapel Hill)

  • Tania Cabello-Hutt

    (University of North Carolina at Chapel Hill)

Abstract

In this article, we consider how individuals’ long-term employment trajectories relate to wage inequality and the gender wage gap in the United States. Using more than 30 years of data from the National Longitudinal Survey of Youth 1979 sample, we identify six employment trajectories for individuals from ages 22 to 50. We find that women across racial/ethnic groups and Black men are more likely than White and Hispanic men to have nonsteady employment trajectories and lower levels of employment throughout their lives, and individuals who have experienced poverty also have heightened risks of intermittent employment. We then assess how trajectories are associated with wages later in careers, at ages 45–50. We find significant variation in wages across work trajectories, with steady high employment leading to the highest wages. This wage variation is primarily explained by work characteristics rather than family characteristics. Finally, we examine gender variation in within-trajectory wages. We find that the gender wage gap is largest in the steady high employment trajectory and is reduced among trajectories with longer durations of nonemployment. Thus, although women are relatively more concentrated in nonsteady trajectories than are men, men who do follow nonsteady wage trajectories incur smaller wage premiums than men in steady high employment pathways, on average. These findings demonstrate that long-term employment paths are important predictors of economic and gender wage inequality.

Suggested Citation

  • Katherine Weisshaar & Tania Cabello-Hutt, 2020. "Labor Force Participation Over the Life Course: The Long-Term Effects of Employment Trajectories on Wages and the Gendered Payoff to Employment," Demography, Springer;Population Association of America (PAA), vol. 57(1), pages 33-60, February.
  • Handle: RePEc:spr:demogr:v:57:y:2020:i:1:d:10.1007_s13524-019-00845-8
    DOI: 10.1007/s13524-019-00845-8
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    References listed on IDEAS

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    Cited by:

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    2. Angelo Lorenti & Jessica Nisén & Letizia Mencarini & Mikko Myrskylä, 2023. "Gendered parenthood-employment gaps in midlife: a demographic perspective across three different welfare systems," MPIDR Working Papers WP-2023-013, Max Planck Institute for Demographic Research, Rostock, Germany.
    3. Sung‐Bou Kim, 2020. "Gender earnings gap among the youth in Malawi," African Development Review, African Development Bank, vol. 32(2), pages 176-187, June.
    4. Lorenti, Angelo & Jessica, Nisen & Mencarini, Letizia & Myrskylä, Mikko, 2023. "Gendered parenthood-employment gaps in midlife: a demographic perspective across three different welfare systems," SocArXiv gmqd9, Center for Open Science.
    5. Salvatore J. Restifo & Igor Ryabov & Bienvenido Ruiz, 2023. "Race, Gender, and Nativity in the Southwest Economy: An Intersectional Approach to Income Inequality," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(3), pages 1-32, June.

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