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ABSTRACTThis study analyzes the two-person, Gronau-type neoclassical model of the household where time use for each person is divided into three basic activities-market work, home production, and pure leisure-plus work related travel time. The latter is treated as predetermined. One contribution of this paper is that the economics of the Gronau model is made clear and a complete comparative static analysis is provided. A second contribution is that the model is subjected to a rigorous empirical test using data that permits the division of time into its four primary components-most data sets do not permit this. Our empirical results do not accord well with the model's predictions or with previous findings by Gronau. In addition, our results suggest that work related travel has an important influence on family time use.
Eric J. Solberg is a professor of economics and David C. Wong is an associate professor of economics at California State University in Fullerton. The authors thank Gregory M.Duncan for helpful discussions on correcting for selection bias, Andrew Gill for many helpful comments and suggestions at every step of the analysis, and Joyce Pickersgill for calling their attention to the data used in this study and for information about the distribution of marginal tax rates. The authors acknowledge benefits from suggestions made at their department's workshop and from comments by discussants at an annual meeting of the Western Economics Association. They also thank the referees for useful comments. They take responsibility for all errors that remain.
Using data from the 1991 National Longitudinal Survey of Youth, the authors estimate earnings equations for each of seven occupational categories and the aggregate sample. When fringe benefits are excluded from the compensation measure, a gender coefficient is statistically significant (that is, women are found to have received significantly lower compensation than men) within six of the seven occupational categories, the exception being the most female-dominated category. When an index of compensation that includes fringe benefits is used, however, a gender coefficient is significant in only one category, which contains relatively heterogeneousjobs. Gender-specific regressions are used to estimate what part of the earnings gap between men and women is due to differences in traits. The results indicate that occupational assignment is the primary determinant of the pay gap, a result that is consistent with a "crowding" explanation of that gap. M ost studies of the gender pay gap have used the wage rate to measure compensation. Non-pecuniary dimensions of work and fringe benefits are usually ignored or are included as explanatory control variables. It is possible that the gender pay gap is actually smaller than is indicated by traditional analysis if the jobs chosen by women have higher non-pecuniary rewards than those chosen by men. That is, women may choosejobs, asJoni Hersch (1991) has
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