The inter-temporal elasticity of female labor supply in Uruguay. Analysis based on pseudo-panels for different education groups and generations

Women behaviors regarding the labor market have changed substantially in recent decades, accompanied by changes in gender roles. These changes, however, were not identical for all women with some groups entering sooner and showing trajectories more similar to those of men. This paper aims to characterize the evolution of female labor supply in Uruguay in the long run and analyze the existence of heterogeneous behaviors for different wage profiles. In order to do so, we estimate women intertemporal and uncompensated labor supply elasticities, both at the intensive and extensive margins and by educational groups and generations. The results show that regardless of the educational level of women's groups, the participation of younger cohorts in the labor market has increased. The estimates confirm that the intertemporal elasticity is positive and greater than the uncompensated both intensive and extensive margins: women adjust their work behavior according to their salary in the lifecycle. This is particularly true for less-educated women, representing evidence contrary to the logic of the "added worker". Positive substitution effect is confirmed, with different magnitudes according to educational level. In particular, the labor supply of women with tertiary education is more sensitive to wages at the extensive than the intensive margin. Finally, intergenerational changes in marginal utility of wealth are found.