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Why are Well-educated Women not Full-timers?

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  • Helena Skyt, Nielsen

    (Department of Economics, Aarhus School of Business)

  • Verner, Mette

    (Department of Economics, Aarhus School of Business)

Abstract

A high proportion of well-educated women in Denmark chooses to work part-time or completely stay outside the labour market. We analyse this phenomenon in a discrete choice dynamic programming framework, taking the potentially endogenous effect of work experience on annual earnings into account. The main findings are that the disutility of full-time work increases with obtained work experience and education. Only the level of returns to these variables serves to outweigh this effect, and results in a high degree of persistence in the full-time participation pattern. Simulation reveals that the participation pattern is significantly affected by changing returns to skills.

Suggested Citation

  • Helena Skyt, Nielsen & Verner, Mette, 2003. "Why are Well-educated Women not Full-timers?," Working Papers 03-8, University of Aarhus, Aarhus School of Business, Department of Economics.
    • Handle: RePEc:hhs:aareco:2003_008
    Note: Published in Danish Journal of Economics, vol. 144(1), pp43-74, 2006
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    More about this item

    Keywords

    High-educated women; labour force participation; disutility of work; discrete choice; dynamic programming;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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