The Effect of Wage Differences on the Cyclical Behavior of the Two Genders in the Labor Market
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Transcript of The Effect of Wage Differences on the Cyclical Behavior of the Two Genders in the Labor Market
The Effect of Wage Differences on the Cyclical Behavior of the Two Genders
in the Labor Market
Nissim Ben-David
Abstract During prosperous periods, which are characterized by an increase in
productivity and in wages, the rates of separation from occupied jobs decrease while the probabilities of finding a new job increase. Thus, unemployment rates fall. Empirical observations however, indicate that the magnitude of this decline is not the same for both genders. This paper investigates the effect of the business cycle on the probabilities of transition between employment and unemployment for men and women. It provides a possible explanation of how different changes in variables, such as wages or productivity of each gender, would effect the separation rates and the probabilities of finding a job for each gender, and thus, determine differences in the magnitude and the direction of the change in the rate of unemployment.
Ben-David Nissim, Department of Economics, University of Haifa and Emek Yezreel Academic College, 31905 Haifa Israel. Email: [email protected] Phone 972-4-6398847, Fax 972-4-6291452
All Working Age (15-64)Prime Age (25-54)
CountryMale FemaleDifferenceRatioMale FemaleDifferenceRatio
Spain1122.9111.912.089.22111.82.28
Greece7.5617.9210.362.376.215.292.45
Italy8.6715.717.041.816.612.76.11.92
France9.6612.963.31.34912.63.61.4
Belgium6.192.91.48
Netherlands2.744.491.751.642.13.81.71.81
Luxembourg1.772.680.911.511.42.91.52.07
Germany8.159.221.071.137.28.51.31.18
Denemark4.696.541.851.393.74.91.21.32
Portugal3.845.051.211.323.44.61.21.35
Finland9.5810.731.151.127.991.11.14
Switzerland2.523.681.161.462.23.211.45
Japan4.824.46-0.360.933.74.40.71.19
Sweden7.56.76-0.740.95.25.90.71.13
Gender Gaps in Unemployment Rates among OECD Countries
All Working Age (15-64)Prime Age (25-54)
CountryMale
Female
Difference
Ratio
Male Female
Difference
Ratio
Spain1122.9111.912.089.22111.82.28
Greece7.5617.9210.362.376.215.292.45
Italy8.6715.717.041.816.612.76.11.92
France9.6612.963.31.34912.63.61.4
Belgium6.192.91.48
Netherlands2.744.491.751.642.13.81.71.81
Luxembourg
1.772.680.911.511.42.91.52.07
Germany8.159.221.071.137.28.51.31.18
Denemark4.696.541.851.393.74.91.21.32
Portugal3.845.051.211.323.44.61.21.35
Finland9.5810.731.151.127.991.11.14
Switzerland2.523.681.161.462.23.211.45
Japan4.824.46-0.360.933.74.40.71.19
Sweden7.56.76-0.740.95.25.90.71.13