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The Usefulness of Predicted Values for Prior Work Experience in Analyzing Labor Market Outcomes for Women

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  • Randall K. Filer

Abstract

This paper proposes an improved way of treating experience in estimating wage equations for women when measures of actual experience are lacking. It shows that using a predicted value for experience from occupation-specific equations estimated on another data set containing actual experience is preferable to using either potential experience (time since school leaving) or predicted experience without taking account of the woman's occupation. Results also show that the use of potential experience may bias the estimated impact of factors such as race and schooling on women's wages.

Suggested Citation

  • Randall K. Filer, 1993. "The Usefulness of Predicted Values for Prior Work Experience in Analyzing Labor Market Outcomes for Women," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 519-537.
    • Handle: RePEc:uwp:jhriss:v:28:y:1993:i:3:p:519-537
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    Cited by:

    1. Susan Averett & Sanders Korenman, 1996. "The Economic Reality of the Beauty Myth," Journal of Human Resources, University of Wisconsin Press, vol. 31(2), pages 304-330.
    2. Averett, Susan L. & Burton, Mark L., 1996. "College attendance and the college wage premium: Differences by gender," Economics of Education Review, Elsevier, vol. 15(1), pages 37-49, February.
    3. Marigee Bacolod & V. Joseph Hotz, 2005. "Cohort Changes in the Transition from School to Work: What Changed and What Consequences Did it have for Wages?," Working Papers 050618, University of California-Irvine, Department of Economics.
    4. Trejo, Stephen J, 1997. "Why Do Mexican Americans Earn Low Wages?," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1235-1268, December.
    5. Budig, Michelle J. & Misra, Joya & Boeckmann, Irene, 2016. "Work-family policy trade-offs for mothers? Unpacking the cross-national variation in motherhood earnings penalties," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 43(2), pages 119-177.
    6. Joseph G. Hirschberg & Daniel J. Slottje, 2004. "Bounding Estimates Of Wage Discrimination," Research in Labor Economics, in: Accounting for Worker Well-Being, pages 215-233, Emerald Group Publishing Limited.
    7. Anh T. Le & Paul W. Miller, 2001. "The Persistence of the Female Wage Disadvantage," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(1), pages 33-52, March.
    8. Munasinghe, Lalith & Reif, Tania & Henriques, Alice, 2008. "Gender gap in wage returns to job tenure and experience," Labour Economics, Elsevier, vol. 15(6), pages 1296-1316, December.
    9. Michael Carlos Best & Henrik Jacobsen Jacobsen, 2013. "Optimal Income Taxation with Career Effects of Work Effort," Working Papers 2013-9, Princeton University. Economics Department..
    10. Zveglich, Joseph E. & van der Meulen Rodgers, Yana & Laviña, Editha A., 2019. "Expected work experience and the gender wage gap: A new human capital measure," Economic Modelling, Elsevier, vol. 83(C), pages 372-383.
    11. Bacolod, Marigee & Joseph Hotz, V., 2006. "Cohort changes in the transition from school to work: Evidence from three NLS surveys," Economics of Education Review, Elsevier, vol. 25(4), pages 351-373, August.
    12. Holly Monti & Lori Reeder & Martha Stinson, 2018. "How long do early career decisions follow women? The impact of industry and firm size history on the gender and motherhood wage gaps," Working Papers 18-05, Center for Economic Studies, U.S. Census Bureau.
    13. Michael P. Kidd & Michael Shannon, 1997. "Imputation of Female Labour Market Experience: Some Australian Evidence on the Zabalza and Arrufat Method," The Economic Record, The Economic Society of Australia, vol. 73(221), pages 136-145, June.
    14. Stephen L. Ross, 2003. "What Is Known about Testing for Discrimination: Lessons Learned by Comparing across Different Markets," Working papers 2003-21, University of Connecticut, Department of Economics, revised Nov 2003.
    15. Meng, Xin, 2004. "Gender earnings gap: the role of firm specific effects," Labour Economics, Elsevier, vol. 11(5), pages 555-573, October.
    16. Michelle Budig & Irene B ckmann & Joya Misra, 2010. "The Motherhood Penalty in Cross-National Perspective: The Importance of Work-Family Policies and Cultural Attitudes," LIS Working papers 542, LIS Cross-National Data Center in Luxembourg.
    17. Christine Siegwarth Meyer & Swati Mukerjee, 2007. "Investigating Dual Labor Market Theory For Women," Eastern Economic Journal, Eastern Economic Association, vol. 33(3), pages 301-316, Summer.
    18. Holly Monti & Martha Stinson & Lori Zehr, 2020. "How Long Do Early Career Decisions Follow Women? The Impact of Employer History on the Gender Wage Gap," Journal of Labor Research, Springer, vol. 41(3), pages 189-232, September.
    19. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS
    20. Braga, Breno, 2018. "Earnings dynamics: The role of education throughout a worker’s career," Labour Economics, Elsevier, vol. 52(C), pages 83-97.
    21. Susan Averett & Sharon Dalessandro, 2001. "Racial and Gender Differences in the Returns to 2-Year and 4-Year Degrees," Education Economics, Taylor & Francis Journals, vol. 9(3), pages 281-292.

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