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Gender Difference Revealed in the Aggregate Labor Market

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This paper deals with the discriminatory behavior in firms’ hiring and firing decisions. It is argued that female workers are the last to be hired and first to be fired. This paper hypothesizes that ifthis kind of gender discrimination were to take place systematically in the labor market, the resulting employment fluctuations of male workers would be different from those of female workers. This paper attempts to determine how the aggregate employment fluctuations of men and women are affected by gender discrimination. Combining gender-discriminatory hiring and firing activity with the fact that economic fluctuations are said to be asymmetric in the sense that upturns are more frequent and less pronounced than downturns, we hypothesize that the employment fluctuations of female workers are more asymmetric than those of male workers. Assuming that the employment fluctuations of male and female workers can be described by a 2nd order Markov stochastic process, the transition probabilities can be estimated by the Maximum likelihood method. The empirical results show that the employment fluctuations of female workers are more asymmetric than those of male workers, while they are both asymmetric in the typical way. More interestingly, gender difference in asymmetric fluctuations is found to be stronger for wageworkers than for non-wage workers, but no difference is found in the case of self-employed workers. It is also found to be stronger for temporarily employed wageworkers than for permanently employed wageworkers.

Abstract

This paper deals with the discriminatory behavior in firms’ hiring and firing decisions. It is argued that female workers are the last to be hired and first to be fired. This paper hypothesizes that ifthis kind of gender discrimination were to take place systematically in the labor market, the resulting employment fluctuations of male workers would be different from those of female workers. This paper attempts to determine how the aggregate employment fluctuations of men and women are affected by gender discrimination. Combining gender-discriminatory hiring and firing activity with the fact that economic fluctuations are said to be asymmetric in the sense that upturns are more frequent and less pronounced than downturns, we hypothesize that the employment fluctuations of female workers are more asymmetric than those of male workers. Assuming that the employment fluctuations of male and female workers can be described by a 2nd order Markov stochastic process, the transition probabilities can be estimated by the Maximum likelihood method. The empirical results show that the employment fluctuations of female workers are more asymmetric than those of male workers, while they are both asymmetric in the typical way. More interestingly, gender difference in asymmetric fluctuations is found to be stronger for wageworkers than for non-wage workers, but no difference is found in the case of self-employed workers. It is also found to be stronger for temporarily employed wageworkers than for permanently employed wageworkers.

참고문헌 (14)

  1. Altonji, J, "Race and Gender in the Labor Market”, in HandBook of Labor Economics", ~ (1999)
  2. Boeri, T., "Is Job Turnover Countercyclical", Journal of Labor Economics, 14, pp.603~625 (1996)
  3. Cain, G. G, "The Economic Analysis of Labor Market Discrimination: A Survey”, in Handbook of Labor Economics"
  4. Choi, C.K., "Gender Difference in Employment Increases and Decreases: Its Structure and Implications"
  5. Choi, C. K., "Asymmetric Gender Difference in Job Matching and Job Separation Costs", National Economics and Management Review, (1) (2002)
  6. Choi, C.K., "Gender Discrimination and Gender Difference in Job matching and Job Separation Probabilities", Korean econometric Society Journal, 14(3) (2003)
  7. Delong, B, "Are Business Cycles Symmetrical?, The American Business Cycles" (1986), The University of Chicago Press
  8. Falk, B., "Further Evidence on the Asymmetric Behavior of Economic Time Series over the Business Cycle", Journal of Political Economy (1986)
  9. Garibaldi, P., "Job Flow Dynamics and Firing Restrictions", European Economic Review, 42, pp.245~275 (1998)
  10. Keynes, J. M., "The General Theory of Employment, Interest and Money" (1936), London, Macmillan
  11. McQueen, G, "Asymmetric Business Cycle Turning Points", Journal of Monetary Economics (1993)
  12. Neftci, S. N., "Are Economic Time Series Asymmetric over the Business Cycle", Journal of Political Economy (1984)
  13. Mortesen, D.T, "The Cyclical Behavior of Job Creation and Job Destruction, In Labor Demand and Equilibrium Wage Formation"
  14. Ramsey, J, "Time Irreversibility and Business Cycle Asymmetry", Journal of Money Credit and Banking, 28(1), pp.1~21 (1996)

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