There are three main indicators years of schooling in

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Unformatted text preview: ian of 12 years for both sexes) Years of work experience Number of job interruptions Differences in Degree of Specialization Families must choose how to allocate the time of their members between paid work outside the home and domestic production. One partner may specialize in earning income, and the other may diversify: working part-time outside the home, and part-time at home with children. Differences in the Degree of Specialization Traditionally, men have specialized, whereas women have diversified. This specialization has improved husbands' earning power: men have had more opportunity to acquire human capital. When earnings of "never married men" and "never married women" with the same human capital are compared, wage rates for the two groups are not significantly different. Oil rig operators Wage rate The Problem with Pay Equity Wage rate Teachers SR Court-enforced wage rate WR WC Unemployment ST WC WT Court-enforced wage rate Shortage MRPR 0 MRPT DT T ST Teachers 0 SR R DR Oil rig operators Unequal Ownership of Capital Inheritance Marriage (assortative mating) Income Redistribution income taxes Progressive tax Regressive tax Proportional tax income maintenance programs Social security Employment insurance welfare subsidized services Income Redistribution 60 50 40 30 20 10 0 Lowest Quintile 3rd quintile 5th quintile Before tax After tax Income Redistribution Cumulative % of income and wealth 100 80 60 40 20 0 20 40 60 Redistribution Line of equality Distribution after taxes and benefits Before redistribution 80 100 Cumulative % of families...
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This document was uploaded on 03/14/2014.

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