econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 19 June 2017

Why Women Need To Be Included In Economic Models

from the Chicago Fed

-- this post authored by Mariacristina De Nardi and Sharada Dharmasankar

Women contribute a large fraction of aggregate labor hours, earnings, and labor force participation. Yet, many models used to study the effects of government policy ignore gender differences and use data on men only. These models are used extensively for examining the effects of government policies and programs - including Social Security, taxation, and welfare programs.

Before evaluating how people respond to such policies, it is important to construct a reliable model of how people behave and why.

The exclusion of women from models aimed at understanding reality and the consequences of policy likely undermines the credibility of the lessons that we learn from these models.

A model’s credibility is heavily dependent on how well it reproduces key features of the data, including aggregate earnings, hours, and output. Constructing a model that accurately estimates these aggregates will likely yield more reliable predictions of how people react to changes in the economic environment, such as changes in wages and taxes. Because women now participate extensively in the labor market, the exclusion of women from models aimed at understanding reality and the consequences of policy likely undermines the credibility of the lessons that we learn from these models.

This Chicago Fed Letter summarizes research from several papers related to these issues. Borella, De Nardi, and Yang (BDY)1 study the cohort of households born in 1941 - 45 using the Panel Study of Income Dynamics (PSID). This cohort has by now completed its working period and has retired, and thus constitutes a useful benchmark. BDY first quantify the labor supply of women, including the fraction of total hours, earnings, and participation by women. Second, they show that the aggregate patterns of hours, earnings, and participation over the life cycle depend on gender and marital status.

[click on image below to continue reading]

Source

http://app.frbcommunications.org/e/er?s=1064 &lid=4692 &elqTrackId=75a5a7cf84f04a788a689d30d7f3c610 &elq=c9122df688664036a7dc9afaac4dc1f2 &elqaid=11865&elqat=1

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Contributors








search_box
Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.







Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved