Working Paper: NBER ID: w0519
Authors: James H. Grant; Daniel S. Hamermesh
Abstract: We estimate substitution possibilities among a set of age-race-sex groups in the labor force. The estimates are based on cross-section data from SMSAs in 1969,and they allow us to consider how substitutable adult women are for young women or young men. The estimates are used, along with assumptions about the extent of wage rigidity and elasticities of labor supply, to simulate the direct and indirect effects of the growth of the female labor force on job opportunities for youth, assuming rigid wages for young workers, and on the wage rates of adult males, assuming these wages are flexible.
Keywords: No keywords provided
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| influx of adult women into the labor market (J21) | shift in the demand curve for youth employment (J29) |
| shift in the demand curve for youth employment (J29) | increased unemployment among youths (J68) |
| increased labor force participation of women (J21) | adverse effects on youth employment (J68) |
| increased labor force participation of women (J21) | moderate wage decreases for other labor inputs (J39) |
| flexible wages (J31) | moderate decreases in wages for both youths and white women (J79) |
| growth of the white female labor force (J21) | negatively impacted earnings prospects of young workers (F66) |