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Children and female labour supply behaviour

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  • Xiaodi Xie
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    Abstract

    Using the generalized residual method, this paper investigates the assumption that children are exogenous in the labour supply equations of married women via alternative regression specifications for the children variables. The empirical results of this paper suggest that children are endogenous to the participation decision and likely to be exogenous to the hours of work decision for married women. Children under age six have a dramatic negative impact on the labour force participation of married women. These findings support the implication of the literature relating fixed costs of employment, including child care costs, to female labour supply.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036849700000020
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 29 (1997)
    Issue (Month): 10 ()
    Pages: 1303-1310

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    Handle: RePEc:taf:applec:v:29:y:1997:i:10:p:1303-1310

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    Web page: http://www.tandfonline.com/RAEC20

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    3. John F. Ermisch & Robert E. Wright, 1993. "Wage Offers and Full-Time and Part-Time Employment by British Women," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 111-133.
    4. Hotz, V Joseph & Miller, Robert A, 1988. "An Empirical Analysis of Life Cycle Fertility and Female Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 91-118, January.
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    6. Gourieroux, Christian & Monfort, Alain & Renault, Eric & Trognon, Alain, 1987. "Generalised residuals," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 5-32.
    7. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-38, July.
    8. Browning, Martin & Deaton, Angus & Irish, Margaret, 1985. "A Profitable Approach to Labor Supply and Commodity Demands over the Life-Cycle," Econometrica, Econometric Society, vol. 53(3), pages 503-43, May.
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    12. Evelyn L. Lehrer, 1992. "The Impact of Children on Married Women's Labor Supply: Black-White Differentials Revisited," Journal of Human Resources, University of Wisconsin Press, vol. 27(3), pages 422-444.
    13. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-47, February.
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    15. 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.
    16. Heckman, James J & Macurdy, Thomas E, 1980. "A Life Cycle Model of Female Labour Supply," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 47-74, January.
    17. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
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    19. Winkelmann, Rainer & Zimmermann, Klaus F., 1991. "A new approach for modeling economic count data," Economics Letters, Elsevier, vol. 37(2), pages 139-143, October.
    20. Richard Smith & Richard Blundell, 1983. "An Exogeneity Test for the Simultaneous Equation Tobit Model With an Application to Labour Supply," Working Papers 546, Queen's University, Department of Economics.
    21. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
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