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Labor market participation in France: an asymptotic least squares analysis of couples’ decisions

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  • Emmanuel Duguet

    ()

  • Véronique Simonnet

    ()

Abstract

This paper examines the interactions between spouses’ decisions to join the labor force. We use the asymptotic least squares method in order to estimate a system of equations with limited dependent variables. We find that when spouse’s decision-making is modeled as simultaneous, this affects primarily the man’s participation equation who appears to be positively influenced by whether the woman works or not, by the number of children and by the birth of a child. The woman’s decision to participate is not affected by whether the man participates or not and depends negatively of the number of children and the birth of a child. This implies that there is a female leadership in decisions to participate in the labor market and that the added-worker effect should be reinterpreted as a function of demography rather than unemployment. Copyright Springer Science+Business Media, LLC 2007

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Bibliographic Info

Article provided by Springer in its journal Review of Economics of the Household.

Volume (Year): 5 (2007)
Issue (Month): 2 (June)
Pages: 159-179

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Handle: RePEc:kap:reveho:v:5:y:2007:i:2:p:159-179

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Web page: http://www.springerlink.com/link.asp?id=109451

Related research

Keywords: Labor supply; Labor market participation; Couples; Asymptotic least squares; C35; D13; J12; J22;

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References

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  1. Chiappori, P.A., 1989. "Collective Labour Supply and Welfare," DELTA Working Papers 89-07, DELTA (Ecole normale supérieure).
  2. Lundberg, Shelly J, 1988. "Labor Supply of Husbands and Wives: A Simultaneous Equations Approach," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 224-35, May.
  3. Marjorie B. McElroy, 1990. "The Empirical Content of Nash-Bargained Household Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 559-583.
  4. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
  5. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  6. Richard Blundell & Pierre-Andre Chiappori & Thierry Magnac & Costas Meghir, 2002. "Collective Labor Supply: Heterogeneity and Nonparticipation," Research Unit Working Papers 0210, Laboratoire d'Economie Appliquee, INRA.
  7. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  8. Daniela Del Boca & Marilena Locatelli & Silvia Pasqua, 2000. "Employment Decisions of Married Women: Evidence and Explanations," LABOUR, CEIS, vol. 14(1), pages 35-52, 03.
  9. Kooreman, P., 1994. "Estimation of econometric models of some discrete games," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377584, Tilburg University.
  10. David Margolis & Véronique Simonnet, 2002. "Educational Track, Networks and Labor Market Outcomes," Working Papers 2002-60, Centre de Recherche en Economie et Statistique.
  11. James J. Heckman, 1977. "Dummy Endogenous Variables in a Simultaneous Equation System," NBER Working Papers 0177, National Bureau of Economic Research, Inc.
  12. Kooreman, Peter, 1994. "Estimation of Econometric Models of Some Discrete Games," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 9(3), pages 255-68, July-Sept.
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Citations

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Cited by:
  1. Chris van Klaveren & Bernard M.S. van Praag & Henriette Maassen van den Brink, 2008. "A Public Good Version of the Collective Household Model: An Empirical Approach with an Application to British Household Data," Tinbergen Institute Discussion Papers 08-018/3, Tinbergen Institute.
  2. Chris van Klaveren & Bernard M.S. van Praag & Henriette Maassen van den Brink, 2008. "A Public Good Version of the Collective Household Model: An Empirical Approach with an Application to British Household Data," Tinbergen Institute Discussion Papers 08-018/3, Tinbergen Institute.
  3. Moreau, Nicolas & Stancanelli, Elena G. F., 2013. "Household Consumption at Retirement: A Regression Discontinuity Study on French Data," IZA Discussion Papers 7709, Institute for the Study of Labor (IZA).
  4. Nicolas Moreau & Elena Stancanelli, 2013. "Household Consumption at Retirement: A Regression Discontinuity Study on French Data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00881215, HAL.
  5. Nicolas Moreau & Elena Stancanelli, 2013. "Household Consumption at Retirement: A Regression Discontinuity Study on French," Documents de travail du Centre d'Economie de la Sorbonne 13072, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  6. Rachel Connelly & Jean Kimmel, 2009. "Spousal influences on parents’ non-market time choices," Review of Economics of the Household, Springer, vol. 7(4), pages 361-394, December.

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