Sex Discrimination and Women's Labor Market Interruptions

39 Pages Posted: 29 Jun 2004 Last revised: 24 Aug 2022

See all articles by David Neumark

David Neumark

University of California, Irvine - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Date Written: January 1993

Abstract

The human capital explanation of sex differences in wages is that women intend to work in the labor market more intermittently than men, and therefore invest less. This lower investment leads to lower wages and wage growth. The alternative "feedback" hypothesis consistent with the same facts is that women experience labor market discrimination and respond with career interruptions and specialization in household production. This paper explores the relationship between self-reported discrimination and subsequent labor market interruptions to test this alternative hypothesis, attempting to remove biases associated with using data on self-reported discrimination. The paper provides evidence consistent with the feedback hypothesis. Working women who report experiencing discrimination are significantly more likely subsequently to change employers, and to have additional children (or a first child). On the other hand, women who report experiencing discrimination, and who consequently have a greater tendency for career interruptions of these types, do not subsequently have lower wage growth.

Suggested Citation

Neumark, David, Sex Discrimination and Women's Labor Market Interruptions (January 1993). NBER Working Paper No. w4260, Available at SSRN: https://ssrn.com/abstract=439611

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