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Hours, Occupations, and Gender Differences in Labor Market Outcomes

Author

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  • Andrés Erosa
  • Luisa Fuster
  • Gueorgui Kambourov
  • Richard Rogerson

Abstract

We document a robust negative relationship between the log of mean annual hours in an occupation and the standard deviation of log annual hours within that occupation. We develop a unified model of occupational choice and labor supply that features heterogeneity across occupations in the return to working additional hours and show that it can match the key features of the data both qualitatively and quantitatively. We use the model to shed light on gender differences in labor market outcomes that arise because of gender asymmetries in home production responsibilities. Our model generates large gender gaps in hours of work, occupational choices, and wages. In particular, an exogenous difference in time devoted to home production of ten hours per week increases the observed gender wage gap by roughly eleven percentage points and decreases the share of females in high hours occupations by fourteen percentage points. The implied misallocation of talent across occupations has significant aggregate effects on productivity and welfare.

Suggested Citation

  • Andrés Erosa & Luisa Fuster & Gueorgui Kambourov & Richard Rogerson, 2017. "Hours, Occupations, and Gender Differences in Labor Market Outcomes," NBER Working Papers 23636, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:23636
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    3. German Cubas & Chinhui Juhn & Pedro Silos, 2023. "Coordinated Work Schedules and the Gender Wage Gap," The Economic Journal, Royal Economic Society, vol. 133(651), pages 1036-1066.
    4. Pintea Mihaela, 2020. "Dynamics of female labor force participation and welfare with multiple social reference groups," The B.E. Journal of Macroeconomics, De Gruyter, vol. 20(1), pages 1-23, January.
    5. Charles Ka Yui Leung & Joe Cho Yiu Ng & Edward Tang, 2020. "Why is the Hong Kong Housing Market Unaffordable? Some Stylized Facts and Estimations," Globalization Institute Working Papers 380, Federal Reserve Bank of Dallas.
    6. Alonzo, Davide & Gallipoli, Giovanni, 2023. "The Changing Value of Employment and Its Implications," CEPR Discussion Papers 17943, C.E.P.R. Discussion Papers.
    7. Dora Gicheva, 2020. "Occupational Social Value and Returns to Long Hours," Economica, London School of Economics and Political Science, vol. 87(347), pages 682-712, July.
    8. Sampreet Singh Goraya, 2019. "How does Caste Affect Entrepreneurship? Birth vs Worth," Working Papers 1104, Barcelona School of Economics.
    9. Tasso Adam & Loren Brandt & Chaoran Chen & Diego Restuccia & Xiaoyun Wei, 2024. "Land Security and Mobility Frictions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(3), pages 1941-1987.
    10. Titan Alon & Matthias Doepke & Jane Olmstead-Rumsey, 2020. "This Time It's Different: The Role of Women's Employment in a Pandemic Recession," Working Papers 2020-057, Human Capital and Economic Opportunity Working Group.
    11. Virginia Sanchez Marcos & Ezgi Kaya & Nezih Guner, 2017. "Labor Market Frictions and Lowest Low Fertility," 2017 Meeting Papers 1015, Society for Economic Dynamics.
    12. Jeffrey T. Denning & Brian A. Jacob & Lars J. Lefgren & Christian vom Lehn, 2022. "The Return to Hours Worked within and across Occupations: Implications for the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 75(5), pages 1321-1347, October.
    13. Denderski, Piotr & Obermeier, Tim, 2024. "Household Taxation, Work Hours Flexibility and Occupational Choice," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302341, Verein für Socialpolitik / German Economic Association.
    14. Milovanska-Farrington, Stefani, 2021. "The Effect of a Health and Economic Shock on the Gender, Ethnic and Racial Gap in Labor Market Outcomes: Evidence from COVID-19," IZA Discussion Papers 14272, Institute of Labor Economics (IZA).
    15. Paula A. Calvo & Ilse Lindenlaub & Ana Reynoso, 2021. "Marriage Market and Labor Market Sorting," NBER Working Papers 28883, National Bureau of Economic Research, Inc.
    16. Neugart, Michael & Zaharieva, Anna, 2018. "Social Networks, Promotions, and the Glass-Ceiling Effect," Center for Mathematical Economics Working Papers 601, Center for Mathematical Economics, Bielefeld University.
    17. Jean-Felix Brouillette & Charles I. Jones & Peter J. Klenow, 2021. "Race and Economic Well-Being in the United States," NBER Working Papers 29539, National Bureau of Economic Research, Inc.
    18. Chaoran Chen & Zhigang Feng & Jiaying Gu, 2022. "Health, Health Insurance, and Inequality," Working Papers tecipa-730, University of Toronto, Department of Economics.
    19. Ge, Suqin & Zhou, Yu, 2020. "Robots, computers, and the gender wage gap," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 194-222.
    20. Goraya, Sampreet Singh, 2023. "How does caste affect entrepreneurship? birth versus worth," Journal of Monetary Economics, Elsevier, vol. 135(C), pages 116-133.
    21. Anja Prummer, "undated". "Discrimination in Promotion," Working Papers 905, Queen Mary University of London, School of Economics and Finance.
    22. Luiza Antonie & Laura Gatto & Miana Plesca, 2020. "Full-Time and Part-Time Work and the Gender Wage Gap," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 48(3), pages 313-326, September.

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    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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