Cultural Change as Learning: The Evolution of Female Labor Force Participation Over a Century.
his paper investigates the role of changes in culture in generating the dramatic increase in married women’s labor force participation over the last century. It develops a dynamic model of culture in which individuals hold heterogeneous beliefs regarding the relative long-run payoffs for women who work in the market versus the home. These beliefs evolve endogenously via an intergenerational learning process. Women are assumed to learn about the long-term payoffs of working by observing (noisy) private and public signals. This process generically generates the S-shaped figure for female labor force participation found in the data . . .
Raquel Fernandez