Hours, Occupations, and Gender Differences in Labor Market Outcomes Articles uri icon

publication date

  • April 2021

International Standard Serial Number (ISSN)

  • 1945-7707

Electronic International Standard Serial Number (EISSN)

  • 1945-7715

abstract

  • We document several facts about hours of work, occupations and wages. First, there is 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. Second, high mean hours occupations are associated with higher wages. Third, women are disproportionately represented in low mean hours occupations. 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

keywords

  • labor supply; occupations; gender wage gap; misallocation