Gender Differences

Page Overview | Income and Substitution Effects | Female vs Male Behavior in the Labor Market | Opportunity Cost of Leisure Time | Works Used

Female vs Male Behavior in the Labor Market

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Gender and economics are not immutable naturally occurring phenomena but rather are socially constructed.

In the last two decades, women have steadily been moving towards economic independency. They have become more educated, and their share of the national labor force has also increased. This is mainly reflected not in decisions to work more but in the wage elasticity of the labor supply curve, which namely reflects the degree women react to changes in the labor market. Elasticities show us the combined effect of the income and substitution effects. They give us a clearer image of the labor market and the reactions of individuals too social, demographic, and economic changes. Elasticity should be a valuable knowledge for policy makers , too, helping them to understand how men and women respond to different patterns.

Other economists such as Jonathan Schwabish from the Center for Policy Research at the Syracuse University conclude that the tendency is towards convergence of the wage elasticities of men and women. Societal norms have changed and women can more easily enter the labor force and thus respond to the labor market changes more and more like men. On the other hand, men can also change their responses to the changes in the labor market such that their elasticities reflect more those of women. Or maybe it is just a combination fo the two trends acting together. (Schwabish)