Abstract
We describe a Family Investment Model: family members can increase future income by pursuing activities that increase their own skill levels or, by engaging in activities that support the human capital investment of other family members. The groups with the largest expected growth in immigrant men’s earnings (Filipinos, Koreans, and Chinese, followed by Indians) have the highest unexplained labor force participation of married women. The groups with the smallest expected growth in men’s earnings (Japanese and the benchmark group of Europeans and Canadians) have the lowest female participation rates.
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Notes
- 1.
Refer to note 6 in Chapter 10 as to why immigrants who have been in the U.S. 30 or more years are a viable comparison.
- 2.
Sensitivity analyses revealed that schooling level, age, and residence in a city are the most important factors to predict men’s wages.
- 3.
The group of non-English-Speaking West Europeans has the value of zero since this group is the reference group in the estimation.
- 4.
We standardized the husband’s return to investment to a 0 to 100 scale by adding the lowest value of the average returns shown in Table 13.2 to each value, dividing each value by the highest value, and multiplying by 100.
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Duleep, H., Regets, M.C., Sanders, S., Wunnava, P.V. (2020). Husbands and Wives: Work Decisions in a Family Investment Model?. In: Human Capital Investment. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-47083-8_13
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DOI: https://doi.org/10.1007/978-3-030-47083-8_13
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Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-47082-1
Online ISBN: 978-3-030-47083-8
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