70th International Atlantic Economic Conference

October 11 - 13, 2010 | Charleston, USA

Unemployment: Men vs. Women. An Analysis from BLS Flows Data

Monday, October 11, 2010: 8:30 AM
Joseph S. Falzone, Ph.D. , Economics, Peirce College, Philadelphia, PA
Objectives

            During the past two decades the unemployment rates for women have been consistently below those of men.  Lower rates of unemployment for women occur both during periods of economic expansion as well as during economic contraction.  The current recession is a case in point where women fared better than men in 2009.  Various explanations have been offered to explain the relatively lower rates of unemployment for women, including the increasing number of women with college degrees as well as women's employment within industries and occupations that are less susceptible to the business cycle.

            The objectives of this paper are twofold.  First using BLS data I compare the rates of unemployment for women and men over the past 10 years.  I then estimate the probability that a woman is unemployed and separate the effects of unemployment associated with years of schooling and with industry and occupation specific effects.

Data and Methods

I utilize family data files from the Panel Study of Income Dynamics for the years 1997 through 2007.  These files contain more than 8,000 records and almost 3,100 variables including occupation, industry, and work histories.  These data provide extensive information on the Head of Households as well as their Wives / "Wives".  The sample used here consists of “prime age” men and women, that is, those between the ages of 25 and 54 years (inclusive) who are in the labor force. 

To determine the degree to which the observed changes in unemployment are associated with changes in human capital investment and industry and occupation specific characteristics, I employ a probit model for both women and men.

Expected Results

            Differential rates of unemployment among women and men have many and diverse causes, including human capital investment, industry, full versus part-time employment, and a taste for work outside of the home.  I anticipate the major determinant of lower unemployment rates for women are a function of years of education and of occupation.

Discussion

            As the labor force participation rate of women continues to climb relative to that of men, lower unemployment rates for women will exert their effects on public policy through lower overall rates of unemployment.  If lower unemployment rates among women are the direct result of years schooling and occupation these factors should also exert their influence on human capital investment for men as well as on occupational shifts.