A dynamic analysis of women’s employment exits

Abstract

This research examines women's rates of leaving a job to become nonemployed (unemployed or out of the labor force) using a stochastic, continuous-time model. The data consist of employment histories of white women constructed from the National Longitudinal Survey of Young Women (1968-1973). The results demonstrate the importance of examining the underlying processes in women's employment. Several differences are found between the determinants of employment exits and what might be expected from the cross-sectional and panel literature on female labor force participation. The findings also provide evidence of the interdependence of fertility and employment, with young children increasing rates of employment exits and with high wages on a job decreasing rates of leaving a job because of a pregnancy. Finally, involuntary employment terminations are examined, and their transition rates are found to decrease with job wages and job tenure and to increase when a woman has children.

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