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The second suggests that, although liberalization of product and labor markets offers substantial benefits, there is no guarantee that the European Monetary Union will result in fewer product market restrictions or less employment protection.

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Welfare and employment in a united Europe : a study for the Fondazione Rodolfo Debenedetti

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College of Nursing Jesenice. Hvalic Touzery, S. Demographic trends and four-generational families. Presentation at the Slovenian Symposium on Active Ageing, Ilinca, S. Rodrigues, A. Schmidt and E. Gender and social class inequalities in active ageing: policy meets theory. Ivarsson, M. Toresson Grip Jensen, A. Master's thesis Johansen, P. Explaining the difference in income-related health inequalities among the elderly in European countries..

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LMU Munich. Kosak, D. Characteristics of aging population in Europe and Israel, their health care utilization snd prevalence of supplemetary health insurance. University of Economics, Prague. Kovalenko, M. Mortelmans A comparative perspective on career mobility in Europe: career patterns and their effects on retirement timing.

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Master's thesis Tartu. Kunder, N. Kutman, K. Laakso, E. Stock market participation and household characteristics in Europe. University of Aalto. Labbas, E. Who Cares for Mom and Dad? Master's Thesis Sweden. Ladin, K. Social inequality and depression: Causal pathways and the influence of absolute and relative position in determining health outcomes.

Harvard School of Public Health. Lazhevska, N. Do financial incentives affect retirement decisions? Master's thesis Budapest. Leon Arellano, J. Subjective survival probabilities and their role in labour supply decisions. Doctoral dissertation Pamplona. Leopold, L. Education and health accross lives, cohorts, and countries: a study of cumulative dis advantage in Germany, Sweden, and the United States. Doctoral dissertation Florence: European University Institute.

Lima da Silva, S. Doctoral dissertation Litwin, H. Dunsky and B. Erlich Falling among Senior Citizens in Israel and in international comparison. Lorenti, A. Investing on ageing: extending working lives across Europe. Master's thesis University of Bremen. Luhavee, T. Lunau, T. Luppi, M. Dependency and poverty: The effect of private care resources on dependent elderly people and their families' income. Doctoral dissertation Rome. Luy, M. There are encouraging developments along this dimension. This pattern is visible across country groups, and is also visible, even more emphatically, for the case of tertiary education.

The gender employment gap widens substantially when one takes into account the presence of children. Women are still the gender predominantly responsible for looking after children: the presence of children in a household increases the employment prospects of men and reduces those of women. On average, as Table 2. This pattern holds both in the Nordic countries with an increase from 3.

The gender gap increases from 5. A similar pattern holds, perhaps surprisingly, for the United States. The differences in employment rates across countries appear to be bigger for women with no children than for women with two or more children. Perhaps not surprisingly, women with children are more likely to work part-time but men with children less likely to do so see Table 2.

Female share in the population by educational attainment Percentage of women in the total population in each category At least upper secondary education Tertiary education 25—34 35—54 55—64 Total Nordic Denmark Finland Norway Sweden How are these changes related to the changes in female employment rates?

We decompose average employment growth in each country by gender, age and part-time or full-time work, and assess how much each dimension contributed, in accounting terms, to average employment growth. Part-time work by gender and presence of children Percentage of persons working part time in total employment by category, workers aged 25 to 54 years Women Men No children One child Two or more children Total No children With children Total Nordic Denmark Finland Norway Sweden In all European Union countries, employment growth was much faster for females than males.

The fall in the gender employment gap is accounted for by the growth of employment of women aged 25— In every country, the contribution to employment growth by prime-age women dominates that of prime-age men, even among low-employment countries such as Italy and Greece.

Average — Change in employment-working age population ratio in percentage points. Average —00 minus average — Average employment growth in per cent. Average growth of working-age population. Nevertheless, the fall in employment among those aged 50—64 is much more marked for men than for women. There are substantial differences within Europe, especially in the role played by part-time jobs. The country that stands out in this respect is the Netherlands, the top European performer.

Source: Garibaldi-Mauro, Share of part-time jobs and employment growth overall employment. The experience of Ireland, the other employment success story of the last twenty years, is more uniform across decompositions, with substantial employment growth observed for both men and women, and both full-time and part-time jobs. In Belgium, Germany, France and Italy, we observe growth in part-time jobs alongside a decline in full-time jobs. As in the comparison of employment levels in Figure 2. First, what are the reasons for the big rise in the employment rate in recent decades, and secondly, why does the rate differ so much across countries?

Because employment rates across countries differ by much more than unemployment rates, the same questions can be asked about the participation rate, and in our discussion we refer to both, although we do not discuss unemployment see Fig. Employment may be low because not enough women want to enter the labor market, or participation may be low because not many jobs are being offered to attract the women into the labor market. Apart from the obvious advantage of the 26 I: European Women in the Labor Force availability of good data and many resources devoted to pure research , the United States has the advantage of large participation rates which are a fairly recent phenomenon.

By the year , this fraction had reached 61 per cent. This trend has been particularly prominent for married women. The labor force participation rate of married women rose from 5 per cent in to about 60 per cent in There are few plausible explanations for this change that have been investigated in the literature. The improvement in working conditions in the market place, both in terms of status and in terms of hours of work, makes it more attractive for women to go out to seek work.

Also, the availability of contraceptive methods allows women to plan their fertility and the timing of births, making it easier for them to plan a career. Key to these factors is the shift from manufacturing to services, which employ more women in jobs such as clerical work and sales. In what follows, we review some of the explanations for the US experience that have been proposed in the literature.

Some of the explanations proposed for this dramatic increase also apply to European countries, which have experienced a similar diffusion of market and domestic technologies. The availability of clerical jobs and the increase in the schooling level of working women made the stigma associated with a working wife much weaker.

The importance of this change was enhanced by improvements in the housework production process, and by the increase in the availability of market goods that could substitute for home-produced products. The increase in the availability of better jobs for women was interpreted by Galor and Weil as a form of female-biased technological change.

These calculations take into account the change in fertility that also occurred in response to the wage rise. Some of these explanations have been analysed in more recent papers. In particular, as argued by Costa , the passage of Title IX in , which applied civil rights legislation to universities, may have had an impact on the admission practices of graduate and professional schools. Fernandez, Fogli, and Olivetti examine the hypothesis that an increase in the proportion of men with mothers who work makes working more attractive to their wives.

A number of contributions gives a quantitative assessment of the importance of the observed changes in the US wage structure and labor market returns in the explanation of the increase in the labor supply of married women between the s and the s. Starting with the work by Katz and Murphy , several researchers have documented how returns to education and experience, and within-group wage inequality, have been rising for both men and women over this time period.

The empirical evidence, however, shows that this is not the case. Pasqua in this volume looks at the opposite direction of causality. In particular, she uses data from the ECHP to analyse the impact of increased female labor force participation on family income inequality. She argues that in the s married women temporarily cut back on market work during childrearing years. A cost of this withdrawal is the loss in accumulated labor market experience. This cost became bigger in the s so married women decreased the interruptions in market hours, increasing the number of hours they supply to the market.

They show, however, that a simple model of household specialisation can predict the observed increase in the labor force participation of married women in response to an increase in wage inequality relative to the gender wage gap.


These studies show that the increase in the returns to experience and the increase in the actual experience for women can explain a large portion of the decrease in the gender wage gap. See chapter 5 on the gender wage gap. This is consistent with the empirical evidence. In their paper, the main factor affecting this cost is the depreciation of human capital that occurs as a consequence of labor market interruptions. However, this claim may be due to the particular model that they employed.

The literature that studies the different unemployment experiences of Europe and the United States over the s and the s emphasizes the role of the interaction between labor market institutions in Europe and other macroeconomic shocks. As pointed out by Bertola et al. Moreover, it is also claimed that the same macroeconomic forces may have been responsible for the observed change in the US wage structure.

But this is the same change that made market work more attractive than work at home for married women in the United States. Even if we compare country experiences since , the female employment gap between, say, the United States and Germany in was about 5 percentage points in favor of the United States but by it increased to 10 points. To take another example, in the gap between the United Kingdom and France was 5 points in favor of the United Kingdom, but by it increased to 12 points. There has been a uniform increase in female employment rates but some countries did better than others.

We investigate here whether the reasons for the differences in country experiences can be attributed to the institutional structure of their labor or product markets.

The equation was estimated with non-linear least squares for 14 of the European countries in our sample some of the institutional variables for Greece were missing , Switzerland, Australia, New Zealand, Japan, Canada and the United States. The results are shown in Table 3. But we also include an index of product market regulation, the OECD measure of the administrative costs of setting up new companies. Employment protection legislation changes very little during the sample because of the absence of information on earlier years, and the company start-up costs do not vary at all.

Only one observation per country is available, for the late s. Our estimates imply small effects on female employment rates. In previous research Bertola et al. Table 3. Institutional influences on female employment rates common unobservable shocks, five-year averages, — Variable 0. Estimated by non-linear least squares. All variables are entered as deviations from sample means. This is a surprising conclusion, in view of the fact that the unionized sectors of the economy tend to be the ones that have a higher ratio of male-tofemale employment, such as manufacturing or big state enterprises.

Bertola et al. Pensions were found to increase the gap, which again can be interpreted as being driven by the male employment rate, because women are not covered by pensions to the extent that men are. A study closer to ours, which studies participation rates only since , is by Genre et al. As in the Bertola et al. But if this country was the most unionized in the sample, employment would have increased by 4. The other estimates reported in the last column of Table 3.

Caution should be exercised in interpreting the results with regard to unionization because the estimate is imprecise, due to a large standard error. But product market regulation is estimated to have a large and precise impact 9 The fraction of female employment that is part-time is endogenous, on the assumption that a lot of the variation in participation rates is due to the participation of women with children, who have a preference for part-time jobs. Nonetheless, when we tried this variable in our employment regressions it did not work as well as it did in the participation regressions of Genre et al.

See also Fig. The country with the most stringent regulations in the setting up of new companies Italy is predicted to have as much as These effects are very large and implausible, especially if our index is interpreted strictly as showing the effect of start-up costs only. They should be taken only as indicative of the important role that the excessive regulation of businesses could play in discouraging women from seeking work. This is a neglected issue in the empirical literature and more research is needed on its full impact.

In the regressions reported in Table 3. We tried to differentiate between country shocks by using information on output growth, terms of trade, real interest rates and cyclical indicators the results are not reported. A glance at our summary tables would seem to associate Catholicism with less female employment and Protestantism with more. We experimented with a variety of measures for religion but unfortunately the results were not robust enough to report. Results, however, were not very precise.

A question that has attracted attention in connection with female employment rates is whether state provision of family care units increases participation. At the Barcelona summit, for example, European leaders decided that by governments in the European Union should provide day care for as many as 90 per cent of children from the age of 3 to the school mandatory age, and for 33 per cent of children under the age of 3.

The variable that we used in our regressions is total spending by the state on family day care divided by the number of women in employment. This suggests that any negative effects of unemployment compensation on female employment are offset if the welfare state also provides generous day care services for women entering employment.

We show instead, in Figure 3. But the positive correlation between the big spenders and their employment rates, essentially the Scandinavian countries, is evident. The graph also shows a time series correlation. The sequences of points moving in the north-eastern direction, evident in the graph, are points that apply to single countries since Countries that have increased family day care spending and experienced a growth in female employment rates include the four Scandinavian countries and also Austria, Germany and Ireland. Employment rate of women and average family day care spending per employed woman I: European Women in the Labor Force 36 consumer durables or contraceptive methods which are not picked up by our variables.

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We show this with two graphs. In Figure 3. Naturally, with so many countries it is not possible to label each curve and follow through individual developments on a single graph, but the graph shows more or less parallel lines running from the s to the s. The highest line is for Sweden and the lowest is for Spain.

Although in more recent years the Swedish line turns down and the Spanish line turns up, overall there does not seem to be a narrowing of the band. Figure 3. If the employment dynamics were driven by convergence, the points in Figure 3. There is some weak evidence that this has been the case, especially, when the very low employment countries Spain, Italy, Ireland are omitted. But although convergence does not seem to be a major force over our entire sample period, it does seem to have been picking up in more recent years.

The negative correlation that we were looking for in Figure 3. Initial employment rate and average growth rate, —, 19 countries 0. The dependent variable is the rate of growth of the employment rate, and the most important institutional 38 I: European Women in the Labor Force Table 3.

Estimation is by non-linear least squares. So the estimated convergence is very slow, as it implies that there is catching up after approximately 60 or more years. Is there evidence of job segregation, namely, of discrimination leading women into atypical forms of employment where their skills are not utilized to their full potential? Occupational segregation has received some attention in the economics literature,1 but less is known on systematic differences in the types of employment contracts held by women.

A key factor to understanding recent labor market developments lies in our ability to understand the nature of these jobs, who has them and what rights they carry. Here we focus only on the aspects that are directly relevant to female employment. We saw that a lot of women are in part-time jobs. But they may also be used as a cheaper option for adjusting employment, with lower wages and severance payments, and poor training see Booth et al. See also references therein. For the United Kingdom, Harkness shows that despite the narrowing gender wage gap in full-time jobs, women in part-time jobs have made less progress in attaining earnings parity with men, and lag behind full-timers in both skills and earnings.

Fixed-term contracts also seem to pay lower wages in the United Kingdom Booth et al.

Women's and men’s career interruptions in Europe: the role of social policies

While temporary jobs indeed seem to represent stepping-stones to permanent work in the United Kingdom Booth et al. As the incidence of atypical forms of employment may differ across genders, systematic features of these jobs may be a potential explanation for the gender gap in wages, job satisfactions, and ultimately of gender discrimination in the labor market. In this section, we examine whether this is indeed the case. Studies on gender discrimination have typically addressed the question of wage discrimination, namely, what fraction of the gender wage differential cannot be explained by differences in skills or in their labor market rate of return.

Discrimination through job segregation is another form of discrimination, which may also lead to wage gaps, if the jobs to which women are segregated are lower-paying ones. Of course, job segregation can arise for reasons other than discrimination. First, men and women may differ in their human capital and productivity in non-market activities, potentially leading to differences in comparative advantages across jobs.

Secondly, their preferences for the characteristics of jobs may also differ. Discrimination refers to the unexplained residual, if any, after segregation due to such factors has been controlled for. A major issue in decomposing the reasons for segregation is the source of differences in skills and job preferences across genders. It implies that the portion of job segregation that cannot be explained by measurable differences in human capital or preferences provides a lower bound for the extent of gender discrimination in the labor market.

The ECHPS is an unbalanced household-based panel survey, containing annual information on a few thousands of households per country. For the purposes of our analysis we select all employees aged 16—64 with complete information on the type of employment contract they hold. Table 4. We are not exploiting the panel dimension of the data set here, and simply compute averages of relevant variables across individuals and waves for each country. The resulting sample statistics can be interpreted as medium run averages of the relevant variables.

The information on reason for part-time work and wages is not available for Sweden. The information on reason for temporary contract is not available for Luxembourg and France. Job Segregation 43 Table 4. Except in Ireland, part-time incidence among men is below 5 per cent everywhere, while for women it goes from about 9 per cent in Portugal and Finland to 45 per cent in the Netherlands.

On average, more women work parttime in central and northern Europe than in the South, while no major geographical pattern can be detected for men. When one takes into account the reason why men and women work part time, a negative cross-country correlation between the use of part-time work and the incidence of involuntary part-time work can be detected. In particular, in northern and central Europe part-time work is less likely to be perceived as involuntary than in the South, especially by women.

Finland is an exception to this general rule, behaving more like a southern than a northern European country. In all countries considered except Spain, Portugal and Greece, on average, slightly less than 10 per cent of employed men hold temporary jobs.

This proportion however rises to 25 per cent in Portugal and Greece, and to over 30 per cent in Spain. The ECHPS does not provide information on the reason why individuals hold temporary jobs, although it may be argued that most cases of temporary employment are indeed involuntary, as a permanent contract would be at least as good as a temporary contract from the perspective of the worker. For the rest of the countries this fraction is substantially lower.

Germany seems to be the best performing country in this respect, with only 17 per cent and 21 per cent of involuntary temporary work among men and women, respectively. Full-timers in northern Europe generally earn more than part-timers for each hour that they work, but the wage differential switches in favor of part-timers when moving South. In particular, the Eurostat data are for only and refer to employees aged 25— Temporary workers everywhere earn less per hour than permanent workers, and this is especially true in southern Europe. Spain is the country with both the highest incidence of temporary work and the highest wage penalty attached to it—around 70 per cent for both men and women.

We next use multivariate analysis to look at how women perform in atypical jobs relatively to men by estimating binary choice models for a number of job attributes. All estimated equations include age and education effects, occupation, sector and year dummies, and control for the family composition of workers and previous unemployment history. The effect of family characteristics is allowed to differ across genders, to pick up the features of employment that may be explained by the different family commitments of each gender.

Related to this, evidence for Europe suggests that the share of temporary contracts is much higher among newly created jobs than among the pre-existing employment stock see Blanchard and Landier for France, and Dolado et al. The detailed results are presented in Tables 4. One way to summarize the estimates in Tables 4. We computed these differences separately into the following groups: single individuals without small children, married individuals without small children, and married individuals with small children at least one aged 0—2 and at least one aged 3—5.

Clearly such categories do not represent the whole population of employees, but they are chosen to illustrate in a parsimonious way the effect of family ties on the incidence of different types of jobs in male and female employment. The resulting gender differences are reported in Table 4. When we take as an example the top left Table 4. Probit estimates of part-time equations UK 0. The estimated equations also include: age and age squared, 2 education dummies, 9 occupation dummies, 2 sector dummies, one dummy for public sector, 3 dummies for unemployment spells if any before the current job unemployed for less than 6 months, for 6—12 months, or for more than 12 months , year dummies.

Exception: for Sweden: no occupation or previous unemployment dummies are included, as the relevant information is not available in the data source. Observations 0. No results are reported for Sweden and Luxembourg on involuntary part time, due to missing information and small sample size respectively. The gender difference rises to Among single individuals without children, gender differences range from 1. Such gender differences rise substantially for those married without children above 20 per cent in a number of northern European countries, and 45 per cent in the Netherlands , and even more for those married with children again the Netherlands are an outlier here, with a gender difference in the predicted probability of working part-time of nearly 80 per cent.

Overall, the cross-country variation of gender differences is relatively small for workers without family ties, and rises substantially when married workers are considered, especially if they have young children. The high incidence of parttime jobs among women in northern European countries, documented in Table 4.

Differences in working hours for single women without children are far smaller across Europe than the differences among married women, with or without small children. But it rises to 35 per cent in France and Italy, 54 per cent in Spain and 80 per cent in Portugal. While there is no clear international pattern in the explanatory capability of marital status, it is the presence of small children that explains more than 40 per cent of the gender difference in the incidence of part-time work in the United Kingdom, Sweden and the Netherlands, and more than one-third in other northern or central European countries, while it explains less than 30 per cent in Spain and Greece, and virtually nothing in France and Italy.

In Portugal the ranking reverses, with women with children being more likely to work full time. Job Segregation 53 individuals in such jobs. At least part of the reason why they are in part-time jobs is the desire for shorter hours rather than the absence of full-time jobs. Aggregating from this to the level of the economy as a whole, it is to be expected that in countries where family ties explain most of the part-time incidence among women, women should be less likely to classify themselves involuntary part-timers.

In the second part of Table 4. There are, however, differences among these countries. While this difference is around 3 per cent in the United Kingdom, it increases to 7 per cent in Italy, 13 per cent in Portugal and Greece and nearly 20 per cent in France. Ireland is the only country in our sample in which single women in part-time jobs are less likely to call themselves involuntary part-timers than single men are.

Among married individuals with children, the gender differential in the probability of being an involuntary part-timer is more mixed. The picture that emerges from the estimates of the two part-time equations can be broadly summarized by saying that in northern and central Europe, part-time work among women is to a large extent explained by family ties especially when there are very young children and it is unlikely to be perceived as the consequence of a market constraint on the number of hours worked.

On the contrary, in southern European countries including France the explanatory power of family ties in female part-time employment is lower, and single women are more likely to be involuntary part-timers than single men are. The results for the southern countries are much easier to reconcile with discrimination against women in regular, full-time jobs than with gender differences in preferences or comparative advantages.

Temporary work is more frequent among single women than it is among single men in Sweden, Finland, Belgium, Austria, and in southern Europe. The highest differential is found in Spain, at 5. Being married, reinforces the tendency for more women to be in temporary work. I: European Women in the Labor Force 54 and exit the labor force, make married women more willing to accept temporary and less secure jobs.

The highest gender difference is in Ireland, where married women without children are about 14 per cent more likely than married men to hold a temporary contract. In second place comes Spain, with a gender differential of 10 per cent. Higher incidence of temporary employment among women bears no clear interpretation in terms of family commitments by women, unless part-time jobs are typically covered by temporary contracts. We therefore consider the possibility that individuals in part-time jobs are also more likely to hold temporary contracts.

We ran a number of other tests to check the robustness of our estimates with the probit equations for job types. First, we included interactions between gender and education variables, to account for different returns to human capital for the two genders. Secondly, we removed variables for job characteristics, which may be endogenous to the choice of contract.

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Thirdly, considering that female labor force participation differs widely across the countries in our sample, we ran ordered probit equations that include non-employment as an alternative to full-time and part-time work, and to permanent and temporary work, respectively. An unequal allocation of genders across jobs may result Job Segregation 55 from differences in productivity and preference characteristics that we have not corrected for, or employer discrimination.

The estimates of the previous section control for productivity by conditioning outcomes on human capital, and for preferences by conditioning on family characteristics. In this section we address the issue of worker preferences more generally, by studying job satisfaction indices. However, we have seen in the previous section that some fraction of female part-time work is indeed involuntary, as a full-time job would have been preferred to a part-time one but was not found.

Aggregate Eurostat data give an even stronger negative picture for temporary work see Table 4. In this section we use job satisfaction indicators to infer how worker preferences are affected when holding an atypical job. The results are reported in Table 4. If anything, the negative effect of holding an atypical job on satisfaction with earnings is mitigated for women in a few cases.

Features which are most closely related to part-time or temporary jobs, like hours of work and job security, are studied in panels 4 and 5 of Table 4. As expected, holding a temporary job implies lower satisfaction with job security in all countries and again this effect is stronger in southern Europe , and women are in this case even more negatively affected than males.

The results of this section can be very broadly summarized by saying that, as far as job satisfaction is concerned, part-time jobs are generally perceived to be as good as full-time jobs in central and northern Europe, and even better than full-time jobs by women in a few cases. On the contrary, in southern Europe they tend to be perceived as inferior. Temporary jobs reduce job satisfaction everywhere, if anything more in the South than in the North. This result is Table 4. The estimated equations also include: one gender dummy, two dummies for marital or cohabitation status interacted with gender , the presence of kids aged 0—2, 3—5, 6—10 and 11— 15 respectively interacted with gender , age and its square, 2 education dummies, 9 occupation dummies, 2 industry dummies, one dummy for public sector, year dummies.

No results are reported for Sweden as information on job satisfaction is not available. In some countries, women are not reported to be happier in part-time jobs either, which is more serious in view of the bigger representation of women in part-time jobs. First, labor legislation or employment agreements may be such that an important fraction of labor costs may not grow in the same proportion as the number of hours worked. Secondly, labor productivity may be affected by working hours and, depending on the relationship between productivity and working hours, one can either expect a premium or a penalty associated with part-time work.

Thirdly, unobserved job heterogeneity may result in wage differentials across types of contracts if part-time and full-time contracts tend to be used for systematically different jobs types. Finally, part-time jobs should pay a compensating wage differential if their non-wage characteristics are undesirable to workers, and vice versa if workers tend to like the non-wage attributes of part-time jobs.

Such characteristics include, among other things, job security, working conditions, job quality and commuting costs per hour worked. Job Segregation 59 human capital, resulting in relatively lower wages. Apart from this, the arguments mentioned above for unobserved heterogeneity and compensating differentials in part-time jobs can be extended to temporary jobs as well see Booth et al. This section assesses any wage penalties associated with atypical jobs by estimating wage equations for the two genders, including controls for part-time and temporary work.

We use log hourly wages as our dependent variable, and include controls for part-time and temporary work, as well as controls for other characteristics.