Abstract

The labor force participation of Jewish women in Israel increased between 1955 and 1980, accelerating in the 1970s. Schooling accounts for most of the change. The sharpest rise is among mothers ages 25-44. Thus differentials in participation by marital status have been sharply narrowed and the life cycle in participation has been transformed, the M-shaped curve being replaced by an inverted U with delayed labor force entry due to prolonged schooling and more continuous participation throughout the childbearing period. The reduced incompatibility between child rearing and market work is associated with part-time work and increased reliance on day-care services. The increased employment of women is concentrated in the service industries, mostly public, and is accompanied by some decline in the relative wage of highly educated women. Successive cross-section estimates corroborate this picture in general but do not support the notion that over time preschool children interfere less in women's labor supply.

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