Exploring Gender Dynamics and Educational Policies: Impacts on Entrepreneurship, Workforce Participation, and Earnings
Paper Session
Sunday, Jan. 5, 2025 8:00 AM - 10:00 AM (PST)
- Chair: Alina Malkova, Florida Institute of Technology
New York State of Mind: The Impact of Pre-K 3 on the Female Workforce Participation Rate
Abstract
On average, New York City families will spend 25% of their income on childcare. If a smaller share of income was spent on childcare, could this impact a woman's decision to join or re-join the workforce? We study the effect of the expansion of free Pre-kindergarten 3-year-old programs (Pre-K 3) in New York City on the female labor force participation rate from 2015 to 2019. New York City guarantees Pre-K 3 seats for a child in some districts starting in 2017 and incrementally rolled out guaranteed spots for particular districts each year. We exploit the variation of access to childcare to estimate the causal effect of Prek3 programs on the female participation rate using a staggered difference-in-difference regression controlling for Pre-K 3 school characteristics, including quality and district characteristics. We find that introducing free universal childcare increases the overall female labor force participation rate, which is stronger for districts with a higher share of low-income women.The Power of Skills: Unleashing Entrepreneurial Potential through Vocational Education
Abstract
The paper delves into the intricate role of vocational education in an individual's decision to pursue entrepreneurship. Despite the growing interest in this field, there is a paucity of research exploring how cognitive and non-cognitive skills, coupled with vocational education, shape the transition into the world of entrepreneurship. To shed light on this area, the study leverages the rich data from the Transition from Education to Employment (TREE) study conducted in Switzerland. By employing a dynamic choice model, the researchers analyze how the decision to embark on an entrepreneurial venture is influenced by many factors, including unobserved individual traits, educational background, prior work experience, cognitive and non-cognitive skills, and other personal characteristics. The findings from the parameter estimates reveal two notable deterrents to entrepreneurial pursuits. Firstly, individuals with strong cognitive skills in STEM fields, such as mathematics and science, exhibit a lower propensity toward entrepreneurship. This observation challenges the conventional wisdom that associates STEM proficiency with entrepreneurial success. Secondly, the diversification of acquired skills appears to hinder entrepreneurial inclinations. Individuals with a broad range of skills may find it more challenging to identify and capitalize on specific entrepreneurial opportunities, thereby reducing their likelihood of venturing into entrepreneurship. These insights contribute to a deeper understanding of the intricate interplay between vocational education, skill sets, and the propensity for entrepreneurship. By illuminating the nuanced dynamics at play, this research paves the way for more targeted interventions and policies aimed at fostering entrepreneurial endeavors and nurturing a thriving entrepreneurial ecosystem.Job Displacement and Gender Inequality in the Distribution of Earning Losses
Abstract
Displaced workers experience long spells of unemployment and persistent changes in their earnings compared to non-displaced workers. Analyzing the effects of involuntary job separation on labor market outcomes has drawn the attention of labor economists and policymakers for decades, and prior research has studied this matter extensively. Most research in this area has focused on men or briefly discussed women's experiences. However, the effects of job loss are more severe and long-lasting for women. On the other hand, not many studies focus on the gender disparities in the earning losses after job displacement, and none of them investigate the gender inequality in the distribution of earning losses after involuntary job loss in the United States. Distributional treatment effect analysis is important to understand how men and women respond differently across the earning distribution to a labor market shock like job displacement. It can also be helpful to learn more about gender inequality in the labor market more broadly. Displaced workers at the top of the earning distribution may not experience the same loss as those at the lower tail. A significant negative impact at the higher end indicates reduced wages for displaced workers finding similarly high-paying jobs, while a pronounced effect at the lower end signals a risk of prolonged unemployment or low-wage work. This study analyzes gender differences in the distribution of earning losses upon job displacement and answers how women's responses vary across the earning distribution compared to men and how decomposing this gap enhances our understanding of gender inequality in the labor market. We extend the job displacement analysis by estimating the distributional effect on weekly earnings for U.S. women to capture heterogeneity across the earning distribution. The second contribution focuses on the gender disparity in earning loss distribution among displaced men and women.Discussant(s)
Wenchen Wang
,
Illinois Institute of Technology
Fabiano Dal-Ri
,
Cornell University
JEL Classifications
- J2 - Demand and Supply of Labor