ABSTRACT
So the labour market devotees shifted to another approach: the human capital theory. Here, women’s lower wages are said to result from a decision to invest less in education and skills training than men, coupled with the fact that skills and experience decline during the period when women are absent from the labour market for family reasons. Women may choose to make a lower investment than men because they anticipate significant periods of absence from the labour market. The conclusion from the theory is that women are, on average, less productive than men.
