Short-Run and Long-Run Prospects for Female Earnings

This paper discussed the prospects for female earnings relative to male earnings. The determinants of the general level of earnings (female and male) are not considered. I concentrate on hourly earnings as being the best measure of the price of labor from both the demand and supply points of view. One can easily extend the discussion to annual earnings by taking account of annual hours. (In 1970 on average employed women worked about 3/4 as many hours per year as employed men.) The estimates of hourly earnings to be presented are calculated from the 1/1000 samples of the 1960 and the 1970 Census of Population. The Census samples provide much useful data on employed persons including such characteristics as sex, schooling, age, race, marital status, and class of worker. I have excluded agricultural and unpaid family members because of well-known difficulties in estimating their earnings and hours of work. All other persons who were at work during the Census week and who had their earnings in the year preceding the Census are included.