Selection into Labor Force and Gender Unemployment Gaps

Abstract

This paper sets the groundwork for analysis of the effect of selection into labor force on gender unemployment gaps. We derive the Manski bounds for gender unemployment gaps in 21 EU countries and show that in addition to the positive selection documented in the gender wage gap research, there is also evidence of negative selection into the labor force among women after childbirth. While positive selection of women into the labor force leads to downward bias in gender unemployment gaps, negative selection results in overestimation of gender unemployment gaps.

Keywords: Selection; Labor Force Participation; Gender Unemployment Gaps

JEL Classification: J13, J21, J71