Labor Force Transitions by Gender: Implications for Separate and Combined Worklife Expectancy

Abstract

The Fair Calculations in Civil Damages Act of 2016 (the “Act”) proposes that tables of worklife expectancy not taking account of gender be used in the calculation of damages amounts for loss of earnings capacity. This study calculates worklife expectancy tables not taking account of gender, by taking weighted averages of the labor force transition probabilities used by Skoog-Ciecka-Krueger (2011) and calculating the resulting worklife expectancies using the method of Skoog (2002). The weights for the weighted averages are from the period January 2005 through December 2009. This study then examines patterns in worklife expectancies and labor force transition probabilities and provides evidence not in support of the hypothesis that women's lower worklife expectancies are due to events limited to childbearing years. It is seen that at almost all ages and at all levels of education: women's rate of departure from the labor force exceeds that of men, women's rate of entry and return to the labor force is less than that of men, and labor force participation rates are less than those of men. This study finds that women's lower labor force participation rates than those of men are accounted for by a greater incidence for women of the statuses “taking care of house or family” and “in retirement.” Combined gender worklife expectancy tables are then applied to the total population, with the result that mean worklife expectancies are higher for women than men at ages 30 and under, and progressively lower for women than men as age increases beyond age 30.