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Labor force transitions of older married couples in Germany

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  • Blau, David M.
  • Riphahn, Regina T.

Abstract

This study investigates the labor force behavior of older married couples in Germany. Monthly observations from the first eleven waves of the German Socio-Economic Panel (GSOEP) are used to describe and analyze the relationship between the labor force behavior of husbands and wives. The empirical model is a discrete time, competing risks hazard model of transitions among labor force states defined by the employment status of both spouses. The analysis indicates that the probability of one spouse exiting employment is much larger if the other spouse is not employed than if the other spouse is employed. Similarly, one member of a couple is much more likely to enter employment if the spouse is employed than if the spouse is not employed. Observed covariates including wages and retirement benefits help to explain these patterns, but unobserved preferences for shared leisure also appear to play an important role.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 6 (1999)
Issue (Month): 2 (June)
Pages: 229-252

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Handle: RePEc:eee:labeco:v:6:y:1999:i:2:p:229-252

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Web page: http://www.elsevier.com/locate/labeco

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References

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  1. Gianna Claudia Giannelli, 1996. "Women`s transitions in the labour market: A competing risks analysis on German panel data," Journal of Population Economics, Springer, vol. 9(3), pages 287-300.
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  9. Axel Borsch-Supan & Reinhold Schnabel, 1999. "Social Security and Retirement in Germany," NBER Chapters, in: Social Security and Retirement around the World, pages 135-180 National Bureau of Economic Research, Inc.
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  17. Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204 Elsevier.
  18. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June.
  19. Blau, David M., 1997. "Social security and the labor supply of older married couples," Labour Economics, Elsevier, vol. 4(4), pages 373-418, December.
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