Wages, Employment, Training and Job Attachment in Low Wage Labor Marketsfor Women

This paper analyzes economic behavior and the effects of training and income support policies in the low wage labor market for women. The opportunity set takes account of nonlinearities and discontinuities associated with career interruption, part-time work, and government programs. There are two sectors! one which rewards training and individual ability, the other which does not and offers only the minimum wage. Effects of policies are found to vary importantly among heterogeneous groups of women according to ability and taste for children and household work. Some preliminary empirical evidence is presented to narrow the choice of specification.