Farm Wives' Labor Force Participation and Earnings

Abstract The decisions of farm wives to work off the farm and the earnings they make in that off-farm employment should be considered simultaneously. Previous studies of wives' off-farm earnings have included only employed wives in their analyses of the factors affecting earnings, which results in biased estimates. This study tests, via Tobit analysis, a model which includes all farm wives and examines the effects of wives' human capital, farm and family constraints, and labor market characteristics on both their off-farm employment decisions and their earnings. Wives' off-farm earnings are found to be related to wives' education, labor market experience, presence of children, other family income, farm size, and debt/income ratio. Changes in these factors have a greater influence on the labor market participation decisions of farm wives than on the variation in their earnings, once employed.     

The Effects of Metropolitan Residence on the Off-Farm Earnings of Farm Families in the United States1

Abstract Previous research on the effects of urbanization on farming and farm families has focused on the consequences of urban expansion on farming practice rather than on the well-being of farm families. Proximity to urban areas has been found to alter the way farm families utilize the nonfarm labor market. In this study, the off-farm earnings of husbands and wives in farm families are compared across metropolitan (metro) and nonmetropolitan (nonmetro) areas using data from the March supplement to the 1989 Current Population Survey. Censored regression models (tobit) and decomposition are used to demonstrate the effects of nonfarm labor market differences on off-farm labor force participation and earnings. The analysis reveals that farm family members, as expected, have significantly higher rates of participation and earnings in metropolitan areas. But this analysis also reveals that increases in off-farm participation are likely to have a larger effect on total off-farm earnings in nonmetropolitan areas than returns to those already working off-farm. The potential for increases in off-farm earnings will be underestimated in nonmetro areas when changes in participation in the off-farm labor market are not taken into account.     

The impact of childbirth on Spanish women’s decisions to leave the labor market

The present paper analyzes the effect of childbirth on Spanish women??s decisions to withdraw from paid work, defined here as the transition from employment to out of the labor force due to the requirements of household production. Decisions regarding fertility and labor market participation are interrelated and depend on individual and household characteristics, as well as external variables such as the availability of childcare services. We postulate that a female??s decision to leave the labor market is taken in a household context, and thus is the outcome which maximizes household welfare after taking into account the employment and earnings characteristics of all household members. We pay special attention to the effect of the male partner??s characteristics upon the female??s decision to withdraw from the labor market. Our empirical results show that in order to better define social and labor market policies on work and family reconciliation, increased attention should be paid to the job characteristics of males given their effect on the optimal assignment of tasks within the household following childbirth.     

Childhood health and labor market inequality over the life course

The authors use data from the Health and Retirement Study's Earnings Benefit File, which links Health and Retirement Study to Social Security Administration records, to estimate the impact of childhood health on earnings curves between the ages of 25 and 50 years. They also investigate the extent to which diminished educational attainment, earlier onset of chronic health conditions, and labor force participation mediate this relationship. Those who experience poor childhood health have substantially diminished labor market earnings over the work career. For men, earnings differentials grow larger over the early to middle career and then slow down and begin to converge as they near 50 years of age. For women, earnings differentials emerge later in the career and show no evidence of convergence. Part of the child health earnings differential is accounted for by selection into diminished educational attainment, the earlier onset of chronic disease in adulthood, and, particularly for men, labor force participation.     

PARENTAL ALTRUISM AND SELF-INTEREST: CHILD LABOR AMONG LATE NINETEENTH-CENTURY AMERICAN FAMILIES

Intergenerational relationships within late nineteenth-century industrial families are analyzed using several large-scale, contemporary household surveys. Nonaltruistic behavior by parents was pervasive. Even among families with positive assets, child labor was common in certain industrial settings, suggesting that child labor (or nonschooling) did not simply reflect parental borrowing constraints. Neither did physical asset transfers offset human capital losses among working youth. A quantitative estimate of parental nonaltruism is derived from an equilibrium labor market model: approximately 90 percent of all child earnings was implicitly competed away through lower adult wages as families migrated to areas with abundant child labor opportunities.     

The Disability Screening Process and the Labor Market Behavior of Accepted and Rejected Applicants: Evidence from the Health and Retirement Study

This paper uses Social Security earnings records linked to data from the Health and Retirement Study to examine the labor market behavior of rejected and accepted disability applicants prior to their application. We find that rejected applicants have substantially lower earnings and labor force participation rates during the decade prior to application than beneficiaries. Also, we find some evidence of a divergence between these groups, with rejected applicants leaving the labor force at a faster rate than beneficiaries as their application date approaches. One interpretation of these results is that the disability screening process on average separates those who are at least partially motivated by adverse economic circumstances when applying for disability benefits from other applicants.     

Income taxation and the allocation of market labor

The allocation of work effort within the market economy will be unaffected by taxation if all returns from labor market activity are taxed equally. However, if the earnings from certain types of market employment are taxed at relatively lower rates, labor will shift into these areas until after-tax earnings are equal across all types of employment. This paper presents evidence suggesting that income taxation induces labor to move from high- to low-tax geographic areas and from wage and salaried jobs into self-employment activities. By affecting the allocation of market labor, the income tax generates a welfare loss in addition to that resulting from the tax’s effect on total work effort.     

Opting Out and Buying Out: Wives' Earnings and Housework Time

It has been proposed that the negative association between wives' earnings and their time in housework is due to greater outsourcing of household labor by households with high-earning wives, but this hypothesis has not been tested directly. In a sample of dual-earner married couples in the Consumption and Activities Mail Survey of the Health and Retirement Study (N = 796), use of market substitutes for women's housework was found to be only weakly associated with wives' time cooking and cleaning. Furthermore, expenditures on market substitutes explain less than 15% of the earnings-housework time relationship. This suggests that use of market substitutes plays a smaller role in explaining variation in wives' time in household labor than has previously been hypothesized.     

Failing to Make Ends Meet: Dubious Financial Success Among Employed Former Welfare to Work Program Participants

To many, declining caseloads and increased labor market entry substantiate welfare reform’s success. This study examines how Louisiana welfare to work program participants who succeeded by leaving assistance and obtaining employment are making ends meet, if their needs are met and which characteristics are associated with having their needs met. Telephone survey data reveal low wages, informal labor market activity, government, community, and social support use, and notable levels of unmet needs. A multivariate analysis shows workers with higher earnings and regular nonmonetary help from family and friends are likely to have more needs met. Those likely to have fewer needs met report lower wages, more young children, use of government support programs and informal labor market activity.     

Women’s Earnings Before and After Marital Dissolution: Evidence from Longitudinal Earnings Records Matched to Survey Data

This paper investigates the change in women’s earnings following marital dissolution from a longitudinal approach. Using unique data that matches the Survey of Income and Program Participation (SIPP) with Social Security longitudinal earnings records, we examine marital dissolution events occurring between 1985 and 2003. Results show significant increases in women’s labor market involvement and earnings following marital dissolutions over the past two decades. We find greater labor force involvement prior to the dissolution event among more recent divorcees; however, among those already in the labor force, the pattern of change in earnings associated with divorce has changed little over the examined period. Human capital and family characteristics were associated with the change in earnings after marital dissolution.     

The Impact of Labor Market Structure on Sex Differences in Earnings

This research examines how structural features of a labor market affect the size of the male-female earnings differential in that market. Theoretical predictions are tested using data on the earnings of male and female academics in the US. Measures of labor market structure are shown to be significantly associated with the size of the earnings differential in 56 labor markets corresponding to specific academic disciplines. As predicted, an oversupply of labor within a market and greater career embeddedness in a single organization within a market increased the size of the earnings gap between men and women. Contrary to predictions, greater flows of information in the market and market permeability had no impact on the size of the earnings differential within markets. In addition, higher percentages of women in the market decreased the wage differential within markets. Additional analysis at the individual level found that men were penalized less than women when labor market conditions led to lower wages. Findings generally support the theoretical position that structural characteristics of the labor market affect the ability of employers to engage in salary discrimination against women.     

Nationality and Income Attainment among Native and Immigrant Hispanic Men in the United States*

This study examines earnings inequality between Hispanic-origin men and non-Hispanic white men (referred to as white) using the 1976 Survey of Income and Education. Results show that human capital and labor supply variables have more impact on Hispanic earnings than labor market characteristics. Post-school job experience and weeks worked conform most consistently to the predictions of micro-economic labor theory. Formal schooling, while positively related to earnings, does not uniformly influence job rewards among Hispanic-origin groups. Ecological variables (social and economic organization) of the labor market have less impact on earnings. There is some evidence that whites benefit from the presence of large concentrations of minority workers, while two Hispanic groups—native Mexican and other Spanish men—are negatively affected by high concentrations of Hispanic workers. A composition analysis shows that from 10 to 50 percent of the earnings gap between Hispanic and white men may be attributable to discrimination.     

SUBURBAN LABOR MARKETS, URBAN LABOR MARKETS, AND GENDER INEQUALITY IN EARNINGS

This study focuses on the role of labor market location in generating gender inequality in earnings. Specifically, the article examines whether suburban versus urban labor market conditions differentially affect gender-based earnings inequality. Tel Aviv metropolitan area labor force data support the thesis that women's tendency to settle for jobs in the vicinity of home is an exchange between economic opportunities and convenience, to avoid conflict with traditional roles. The cost of staying in the suburban labor market is greater for women than men, and suburban exceeds urban labor market gender-linked economic discrimination.     

Occupational Advantage and the Impact of College Rank on Labor Market Outcomes*

Most analyses of the effects of college rank on labor market outcomes focus on its average impact across sub-populations and employment situations. The framework adopted in this paper, however, suggests that the effects of college rank may vary by individual characteristics and type of job. Using data from the 1973 Occupational Changes in a Generation Survey, we test three hypotheses suggesting that occupational advantage, as measured either by family of origin or current position, is a significant determinant of capacity to convert increments in college prestige into labor market success. The findings suggest that where one went to college is especially consequential for (1) the occupational status of individuals from professional families; (2) the earnings of individuals from both professional and managerial families; and (3) the earnings of individuals in both professional and managerial positions. Overall, these findings tend to confirm the study's underlying hypothesis that aggregate analyses of college rank may be misleading when applied across sub-populations and employment situations.     

The Effect of Exercise on Earnings: Evidence from the NLSY

This paper investigates whether engaging in regular exercise leads to higher earnings in the labor market. While there has been a recent surge of interest by economists on the issue of obesity, relatively little attention has been given to the economic effects of regular physical activity apart from its impact on body composition. I find that engaging in regular exercise yields a 6 to 10% wage increase. The results also show that while even moderate exercise yields a positive earnings effect, frequent exercise generates an even larger impact. These findings are fairly robust to a variety of estimation techniques, including propensity score matching.     

Language as Both Human Capital and Ethnicity1

In this study, we estimate earnings differentials for knowledge of thirteen minority languages in Canada's three largest urban area. We find that conditional on knowledge of a majority language, knowledge of a minority language is associated with lower earnings. However, the negative differential diminishes for those languages with large local populations. This suggests a positive human capital effect which is for the most part swamped by a negative factor. We argue that this factor is a reflection of ethnicity operating either through ethnolinguistic labor market enclaves or labor market discrimination against minorities.     

THE IMPACT OF SOCIAL CAPITAL ON THE EARNINGS OF PUERTO RICAN MIGRANTS

There is a paucity of studies examining the relationship between Puerto Ricans' social capital and their earnings. I utilized data from the Latin American Migration Project (collected in 1998 and 1999) to test five hypotheses derived from social capital theory to predict the hourly earnings of Puerto Rican migrants. My study illustrates that Puerto Rican migrants' social capital is positively related with their earnings. Interestingly, the social capital effects only pertain to Puerto Rican females. Additionally, Puerto Rican migrants do not benefit from ethnic solidarity in terms of increased wages. My analyses point toward social capital's ability to provide important labor market information to Puerto Rican females, which they appear to use to acquire jobs paying higher wages.
Social capital theory has been applied to many different phenomenon including banking, education, immigration, labor markets, and nation building ( Massey et al. 1987 ; Coleman 1988 ; Uzzi 1999 ; Fernandez, Castilla, and Moore 2000 ; Putnam 2000 ). Within the labor market, social capital has been found to be related with earnings, employment, formal employment, and job tenure ( Mier and Giloth 1986 ; Donato, Durand, and Massey 1992 ; Aguilera 1999; 2003 ; Philips and Massey 1999 ; Aguilera and Massey 2003 ). Within the immigration field, social capital has been linked with the migration process, labor market outcomes, and attainment of citizenship ( Massey et al. 1987 ; Baker 2000 ; Aguilera and Massey 2003 ; Fussell 2004 ). Unfortunately, Puerto Ricans have been unstudied within this massive literature about social capital. Additionally, gender differences in returns to social capital are only just beginning to be recognized and there is little agreement as to whether males or females benefit most from social capital. I studied the relationship between social capital and labor market outcomes of Puerto Rican migrants, paying special attention to differences in gender.     

The earnings of Asian male immigrants in the Canadian labor market

"The earnings of Asian-born immigrants in the Canadian labor market declined relative to the earnings of native-born workers between 1981 and 1986. Analysis of the labor market performance of immigrants from four regions of Asia--Southern Asia, South East Asia, Eastern Asia and Western Asia--shows that Asian immigrants are a heterogeneous group. However, changes in the birthplace composition of Asian immigrants cannot explain the fall in the relative earnings of the Asian aggregate. Attention is drawn to the switch in the distribution of immigrants across the admission classes as a possible explanation of this phenomenon."     

SOURCES OF EARNINGS INEQUALITY IN THE BLACK AND WHITE FEMALE LABOR FORCES

Earnings inequality trends and their sources from 1975 to 1986 are evaluated for two historically subordinate working groups—black and white women—using Current Population Survey data. The dual nature of women's employment, improved earnings opportunities, and continuing segregation into low-paying positions create conditions under which earnings inequality in these two groups is expected to increase. Two sources of changing inequality levels are examined to determine which better explains inequality trends: the redistribution of women across labor market positions, which should have occurred due to industrial restructuring; and changes in the rates of earnings returns to labor market positions. For both groups, changes in returns better explain positive inequality trends in the 1980s, although black women's earnings are somewhat more influenced than whites' by their redistribution across labor market positions.     

Opting out among women with elite education

Whether highly educated women are exiting the labor force to care for their children has generated a great deal of media attention, even though academic studies find little evidence of opting out. This paper shows that female graduates of elite institutions have lower labor market involvement than their counterparts from less selective institutions. Although elite graduates are more likely to earn advanced degrees, marry at later ages, and have higher expected earnings, there is little difference in labor market activity by college selectivity among women without children and women who are not married. But the presence of children is associated with far lower labor market activity among married elite graduates. Most women eventually marry and have children, and the net effect is that labor market activity is on average lower among elite graduates than among those from less selective institutions. The largest gap in labor market activity between graduates of elite institutions and less selective institutions is among MBAs, with married mothers who are graduates of elite institutions 30 percentage points less likely to be employed full-time than graduates of less selective institutions.