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An Equilibrium Theory of Wage and Employment Cyclicality by Gender and by Industry

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  • Donggyun Shin

Abstract

This paper presents an equilibrium theory that accounts for how cyclical patterns of employment and real wages vary between genders and across industries. Workers' self‐selection of industrial sectors, gender differences in comparative advantage among sectors, sector‐nonneutral shocks, and resulting mobility of workers across sectors play the key roles in explaining wage and employment cyclicality by gender and by industry. Numerical simulations demonstrate that reasonable parameter values exist under which the current model accords with several stylized facts. These parameter values are characterized most importantly by men's comparative advantage in the sector subject to larger cyclical demand shocks.

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  • Donggyun Shin, 1999. "An Equilibrium Theory of Wage and Employment Cyclicality by Gender and by Industry," Southern Economic Journal, John Wiley & Sons, vol. 65(3), pages 451-471, January.
    • Handle: RePEc:wly:soecon:v:65:y:1999:i:3:p:451-471
    DOI: 10.1002/j.2325-8012.1999.tb00170.x
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