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Female Earnings Inequality: The Changing Role of Family Characteristics and Its Effect on the Extensive and Intensive Margins

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  • David Card
  • Dean R. Hyslop

Abstract

Using data for three cohorts of women in the PSID, we show that annual earnings inequality fell sharply between the late 1960s and the mid-1990s, with a large decline in the component attributable to the extensive margin. We then fit earnings-generating models that incorporate both intensive- and extensive-margin dynamics to data for the three cohorts. Our models suggest that more than 80% of the decline in female earnings inequality can be attributed to a weakening of the link between family-based factors (i.e., children and the presence and incomes of partners) and the intensive and extensive margins of earnings determination.

Suggested Citation

  • David Card & Dean R. Hyslop, 2021. "Female Earnings Inequality: The Changing Role of Family Characteristics and Its Effect on the Extensive and Intensive Margins," Journal of Labor Economics, University of Chicago Press, vol. 39(S1), pages 59-106.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/711368
    DOI: 10.1086/711368
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    Cited by:

    1. Iván Fernández‐Val & Aico van Vuuren & Francis Vella & Franco Peracchi, 2024. "Hours worked and the US distribution of real annual earnings 1976–2019," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 39(4), pages 659-678, June.
    2. Iv'an Fern'andez-Val & Franco Peracchi & Aico van Vuuren & Francis Vella, 2018. "Selection and the Distribution of Female Hourly Wages in the U.S," Papers 1901.00419, arXiv.org, revised Jan 2022.
    3. Iván Fernández‐Val & Aico van Vuuren & Francis Vella & Franco Peracchi, 2023. "Selection and the distribution of female real hourly wages in the United States," Quantitative Economics, Econometric Society, vol. 14(2), pages 571-607, May.
    4. Borghorst, Malte & Mulalic, Ismir & van Ommeren, Jos, 2021. "Commuting, Children and the Gender Wage Gap," Working Papers 15-2021, Copenhagen Business School, Department of Economics.
    5. Holmberg, Johan, 2021. "Earnings and Employment Dynamics: Capturing Cyclicality using Mixed Frequency Data," Umeå Economic Studies 991, Umeå University, Department of Economics.

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