The Second Paycheck

The Second Paycheck: A Socioeconomic Analysis of Earnings is a comprehensive analysis of the socioeconomic aspects of earnings, with emphasis on the dynamic labor supply behavior of men and women. The importance of dynamic models in understanding labor supply is highlighted. The impact of children on the dynamic labor supply of men and women, and how changes in marital status affect female labor supply, are also discussed. Comprised of eight chapters, this book begins by considering several reasons why the labor force behavior of married women has become an important topic in the mainstream of the economics literature. The work behavior of married women is examined in the larger context of the work behavior of married and unmarried men and women. Furthermore, a microanalytic simulation approach to behavioral research and forecasting is presented. The behavioral model used in this study is then described. In addition to coefficient estimates, the probabilities of work, expected wage rates and expected hours of work are analyzed. A Heckman-type model of work behavior is also generalized to include unemployment. This monograph is intended for economists, sociologists, students of labor economics, researchers, forecasters, and those from all backgrounds who are interested in understanding or forecasting the employment and earnings behavior of women.

ForewordPreface1. Introduction 1.1 Economists and Working Women 1.2 Our Behavioral Focus 1.3 Viewing the Work Behavior of Married Women in a Broader Context 1.4 Our Econometric Approach 1.5 A Microanalytic Simulation Approach to Behavioral Research and Forecasting 1.6 An Overview of the Chapters of This Book Footnotes to Chapter 12. Methodology and Data 2.1 An Inertia Model of Work Behavior 2.2 The Inertia Model versus Traditional and Evolutionary Schools of Thought 2.3 A Formal Statement of the Inertia Model and Estimation of This Model 2.4 Variable Definitions 2.5 Biases, Biases, Biases 2.6 Standard Errors and Significance Tests 2.7 Our Data Base, and the Characteristics of the Women and Men Whose Data Have Been Used in This Study Footnotes to Chapter 2 Addendum to Chapter 2. A Standard Model and a First Difference Version of This Model Footnotes to Addendum3. Estimation Results for Our Inertia Model 3.1 Hypothetical Women and the Calculation of Their Probabilities of Work, Wage Rates, and Hours of Work 3.2 Marital Status Variables 3.3 Age 3.4 Race 3.5 Education 3.6 Special Circumstances Affecting Young Women 3.7 Child Status Variables 3.8 Other Income Variables 3.9 Macroeconomic Variables 3.10 Lagged Hours of Work and Wage Rate Variables 3.11 Selection Bias 3.12 Current Wage Rate Footnotes To Chapter 34. Comparisons of Our Inertia Model with Various Simpler Models 4.1 How Are Our Empirical Results Affected by the Incorporation of Information Concerning Work Behavior in the Previous Year? 4.2 Simulation Comparisons for Our Standard, Dummy, Split, and Inertia Models 4.3 Sensitivity of Results to Inclusion of Lagged Dependent Variable in Hours Equation, Correction for Selection Bias, and Log-Linear Specification of the Wage Equation 4.3.1. Dummy for Married in Previous Year 4.3.2. Age 4.3.3. Race 4.3.4. Education 4.3.5. Child Status Variables 4.3.6. Other Income Variables 4.3.7. Macroeconomic Variables 4.4 Simulation Comparisons of Inertia Model With Models A, B, and C 4.5 How Well Can Our Alternative Models Capture the Impacts of Key Explanatory Variables? 4.6 Out-of Sample Simulation Results 4.7 Sensitivity of Our Simulation Results to Our Treatment of Extreme Wage Estimates Footnotes to Chapter 45. Previous Work Experience Footnotes to Chapter 56. Sensitivity of Our Simulation Results for Wives to Changes in Their Circumstances Footnotes to Chapter 67. Unemployment 7.1 Generalizing a Heckman-Type Model of Work Behavior to Include Unemployment 7.2 The Data Base for Our Analysis of Unemployment 7.3 Determinants of the Probability and Duration of Unemployment Footnotes to Chapter 78. Conclusions 8.1 Behavioral Results 8.2 Modeling Contributions 8.3 Inference 8.4 A Conjecture Loosely Related to Our Behavioral Results 8.5 Implications for Further Research 8.6 Implications for Further Data Collection Footnotes to Chapter 8Appendix A. Year by Year Average Simulation Results for the Standard, Dummy, Split, and Inertia ModelsAppendix B. Distributional Comparisons for Our Simulation Results for the Standard, Dummy, Split, and Inertia ModelsAppendix C. Distributional Comparisons for Our Simulation Results for the Inertia Model and Models A, B, and CAppendix D. Actual and Simulated Distributions for Years of Work Out of 7 and Individual Income Cumulated Over 7 Years for Various Partitions of Our Simulation PopulationAppendix E. Out-of-Sample Simulation Results for All ModelsAppendix F. Simulation Populations for Models with Log-Linear Wage Equations, and Results Using $20 Wage CutoffReferencesAuthor IndexSubject Index