Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure

Abstract

A rich and diverse literature exists concerning the distribution of labor incomes. One approach namely that of human capital concentrates on lifetime accumulation paths of capacity units (human capital). Individual variations in human capital imply differences in earnings power thereby yielding strong implications concerning earnings distribution within a population. Despite its explanatory power the human capital model has been widely criticized. One criticism centers on its inability to obtain inferences concerning occupational distribution. The purpose of this paper is to alleviate at least some such criticism by applying the hedonic price approach so as to embed occupational choice into the human capital framework. The significance is that neoclassical economic theory can be used to obtain implications concerning the determinants of occupational structure. (excerpt)