An investigation of gender differentials in the labor market

One of the most salient transformations of Twentieth Century labor markets is the increasing participation of women. This transformation is the result of social and economic changes that had a deep impact on many choices women make, such as the number of children they have and the type of career they pursue. This dissertation contributes to the existing literature by further analyzing the role of selection in the labor force, labor market transitions and child care costs on women's labor market outcomes in the US and in Europe.;In the first chapter, I compare men and women of two recent cohorts. The use of panel data allows the consistent estimation of the returns to labor market skills over the life-cycle and to uncover the role of individual heterogeneity and contemporaneous idiosyncratic shocks on women's selection into the labor force. In addition, by comparing two cohorts of women with very different expectations and behavior, this chapter contributes to the literature that investigates the determinants of the decline in gender differentials during the past fifty years.;The second chapter (with Marian Vidal-Fernandez) examines the role of grandparents' child care provision on mothers' labor market participation. Using data for eleven European countries, we find significant differences in the characteristics of families who rely on this form of child care arrangement. Instrumental variable estimates show that the availability of grandparents' care is associated with a fifteen percent increase in female labor force participation. Moreover, we find that estimates that do not control for simultaneity might be downward biased suggesting that women who benefit the most from this type of care have lower potential wages.;The third chapter analyzes gender differences in job transitions using a competing risks model. I distinguish between three mutually exclusive states: (i) moving to another job, (ii) moving to unemployment, and (iii) moving out-of-the labor force. Having three states is crucial to accurately measure gender differences in turnover behavior. Failing to consider these multiple states leads to the underestimation of gender differences in turnover since men are more prone to move to unemployment while women move out-of-the labor force.