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

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Author Info
Emmanuel Duguet ()
Véronique Simonnet ()

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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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File URL: http://hdl.handle.net/10.1007/s11150-007-9008-z
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Publisher 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

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

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-67, June. [Downloadable!] (restricted)
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  2. Daniela Del Boca & Marilena Locatelli & Silvia Pasqua, 2000. "Employment Decisions of Married Women: Evidence and Explanations," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 14(1), pages 35-52, 03. [Downloadable!] (restricted)
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  3. 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. [Downloadable!] (restricted)
  4. Richard Blundell ; Pierre-André Chiappori ; Thierry Magnac ; Costas Meghir, 2001. "Collective Labor Supply : Heterogeneity and Nonparticipation," Working Papers 2001-32, Centre de Recherche en Economie et Statistique. [Downloadable!]
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  5. Margolis, David N. & Simonnet, Véronique, 2003. "Educational Track, Networks and Labor Market Outcomes," IZA Discussion Papers 699, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July. [Downloadable!] (restricted)
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  7. Bjorn, Paul A. & Vuong, Quang H., 1985. "Econometric Modeling of a Stackelberg Game with an Application to Labor Force Participation," Working Papers 577, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  8. 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. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
  10. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. van Klaveren, Chris & van Praag, Bernard M. S. & Maassen van den Brink, Henriette, 2008. "A Public Good Version of the Collective Household Model: An Empirical Approach with an Application to British Household Data," IZA Discussion Papers 3274, Institute for the Study of Labor (IZA). [Downloadable!]
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