the effect of wage differences on the cyclical behavior of the two genders in the labor market

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The Effect of Wage Differences on the Cyclical Behavior of the Two Genders in the Labor Market Nissim Ben-David

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The Effect of Wage Differences on the Cyclical Behavior of the Two Genders in the Labor Market. Nissim Ben-David. Abstract - PowerPoint PPT Presentation

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Page 1: 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

Page 2: The Effect of Wage Differences on the Cyclical  Behavior of the Two Genders in the Labor Market

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

Page 3: The Effect of Wage Differences on the Cyclical  Behavior of the Two Genders in the Labor Market

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

Page 4: The Effect of Wage Differences on the Cyclical  Behavior of the Two Genders in the Labor Market

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