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Determinants of Labor Force Participation of Older Married Men in Taiwan

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  • Chuang-yi Chiu

    ()
    (National Chengchi University)

  • Jennjou Chen

    ()
    (National Chengchi University)

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    Abstract

    As the proportion of older population increases in Taiwan, issues related to older individuals' labor market behavior attract public attention. During 1988 to 2008, labor force participation rate of older married men declined about 10 percentage points. This paper tries to identify the determinants of older married men's labor force participation in Taiwan. We use data from Manpower Survey and Manpower Utilization Survey from 1988 to 2008. The sample comprises 51,730 observations of married men aged 55-64. Decompositions with methodologies of Oaxaca (1973) and DiNardo et al. (1996) are conducted for explaining the decline in labor participation rate of older married men. The results indicate that the increase in wives' labor force participation increases husband's likelihood of participation and has prevented aggregate husbands' participation rate from declining to the extent of about 1 percentage point. However, regional unemployment rate negatively affects husbands' likelihood of participation and explains at least 3.5 percentage points of the total decline in husbands' participation rate.

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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 33 (2013)
    Issue (Month): 4 ()
    Pages: 3088-3101

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    Handle: RePEc:ebl:ecbull:eb-13-00786

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    Keywords: labor force participation; older men; family;

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    1. Blundell, Richard & Macurdy, Thomas, 1999. "Labor supply: A review of alternative approaches," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 27, pages 1559-1695 Elsevier.
    2. Tammy Schirle, 2008. "Why Have the Labor Force Participation Rates of Older Men Increased since the Mid-1990s?," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 549-594, October.
    3. Courtney C. Coile & Phillip B. Levine, 2007. "Labor market shocks and retirement: Do government programs matter?," NBER Chapters, in: Trans-Atlantic Public Economics Seminar (TAPES), Public Policy and Retirement, pages 1902-1919 National Bureau of Economic Research, Inc.
    4. Alan L. Gustman & Thomas L. Steinmeier, 2002. "Social Security, Pensions and Retirement Behavior Within the Family," NBER Working Papers 8772, National Bureau of Economic Research, Inc.
    5. Daniel Hallberg, 2011. "Economic Fluctuations and Retirement of Older Employees," LABOUR, CEIS, vol. 25(3), pages 287-307, 09.
    6. Dinardo, J. & Fortin, N.M. & Lemieux, T., 1994. "Labor Market Institutions and the Distribution of Wages, 1973-1992: a Semiparametric Approach," Cahiers de recherche 9406, Universite de Montreal, Departement de sciences economiques.
    7. Blau, David M, 1998. "Labor Force Dynamics of Older Married Couples," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 595-629, July.
    8. Gustman, Alan L & Steinmeier, Thomas L, 2000. "Retirement in Dual-Career Families: A Structural Model," Journal of Labor Economics, University of Chicago Press, vol. 18(3), pages 503-45, July.
    9. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
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