Labor Market Competition among Youths, White Women, and Others

Abstract

This paper examines labor market effects of increased labor force participation Of youths and women.Using 1969 cross-section data for manufacturing, substitution elasticities for pairs of inputs from agerace-sex aggregates of labor and c?pital are estimated.Findings include strong substitution between youths and white females, and complementarity between many of the remaining inputs.Then, allowing either rigid or flexible youth wages, a ten percent increase in white female participation is simulated.Findings are respectively: either a large decrease in youth employment and mode~ate wage decreases of other labor, or moderate decreases in wages of youths and white women.

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