Women and the Economy
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1 Saul D. Hoffman Professor of Economics, University of Delaware, USA Susan L. Averett Charles A. Dana Professor of Economics, Lafayette College, USA Women and the Economy Family, Work and Pay Third edition _01_previii.indd iii
2 Saul D. Hoffman and Susan L. Averett 2016 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6 10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act First published 2016 by PALGRAVE Palgrave in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number , of 4 Crinan Street, London, N1 9XW. Palgrave Macmillan in the US is a division of St Martin s Press LLC, 175 Fifth Avenue, New York, NY Palgrave is a global imprint of the above companies and is represented throughout the world. Palgrave and Macmillan are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN paperback This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress _01_previii.indd iv
3 Contents Acknowledgments viii 1 Women and the economy 1 Introduction 1 Why study women? 3 Economic analysis 5 Overview of the book 7 Learning more 7 Final words 12 2 Economics tools and thinking 14 Introduction 14 Microeconomics the basic approach 14 Microeconomics basic tools and concepts 20 Supply, demand, and market equilibrium 25 Empirical methods in economics: an introduction 28 Summary 38 3 Marriage and the family an economic approach 39 Introduction 39 Marriage facts and trends 40 The economics of marriage 44 The marriage market: a supply and demand analysis 60 The distribution of resources in marriage 68 Marital search 71 Summary 75 4 Marriage applications and extensions 76 Introduction 76 The gains to marriage: health, earnings, and happiness 76 Cohabitation 79 Divorce 83 Race and family structure: an economic analysis 92 Education and marriage: inequality in the twenty-first century 100 Summary 103 v _01_previii.indd v
4 vi CONTENTS NOT FOR DISTRIBUTION 5 The economics of fertility 104 Introduction 104 Fertility facts and trends 104 Fertility the modern economic approach 110 Choosing the economics of fertility 115 Explaining the decline in fertility 119 Summary 126 Appendix: fertility and the interaction of quality and quantity The economics of fertility: applications and extensions 129 Introduction 129 Non-marital and teen fertility: facts and trends 129 Non-marital and teen fertility: economic explanations 138 Birth control and women s education, marriage, and work 148 New developments in the economics of fertility 151 Summary Women at work 157 Introduction 157 Facts and trends 157 An economic model of women s labor force participation 167 Explaining the increase in women s labor force participation 176 Evidence: working women in the twentieth century 184 Summary 186 Appendix: Labor supply analysis an alternative approach 187 Introduction 187 The basics of labor supply analysis 188 Choosing hours of work 192 Labor force participation 194 Summary Women s labor force participation: applications and extensions 198 Introduction 198 Taxes and transfers 198 Children, childcare costs, and women s labor force participation 213 Women and work: new research 221 Summary Women s earnings, occupation, and education: an overview 227 Introduction 227 The gender gap in earnings 227 Occupational segregation 233 Gender differences in education 238 How labor markets work an overview 240 Summary The gender gap in earnings: competing explanations 248 Introduction 248 Human capital the supply of skills to the labor market _01_previii.indd vi
5 CONTENTS vii Gender and human capital 252 Labor market discrimination and women s earnings 258 Other explanations of the gender gap in earnings 267 Summary 279 Appendix: present value analysis and the return to human capital 280 Net present value and the internal rate of return 285 Optimal investment in human capital The gender gap in earnings: methods and evidence 288 Introduction 288 Methods for analyzing the gender gap in earnings 288 The evidence why do women earn less than men? 293 Gender discrimination in employment 303 Specialized studies of women s earnings 306 Summary Employment and earnings policies 314 Introduction 314 Anti-discrimination policies 314 Policies to help women balance work and family 326 Women and Social Security 340 Conclusion Marriage and fertility in developing countries 344 Introduction 344 Marriage in developing countries 346 Fertility in developing countries 356 Summary Women s work and earnings in developing countries 367 Introduction 367 Women and work in developing countries 367 Women s earnings in developing countries 378 Conclusion 385 Index _01_previii.indd vii
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