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A bivariate probit approach to the determination of employment: a study of teen employment differentials in Los Angeles County

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  • Madhu Mohanty
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    Abstract

    Following a bivariate probit approach and using the 1990 Public Use Microdata Samples (PUMS) for Los Angeles County, this study shows that the employment of teenage workers depends on both the worker's participation decision as well as the employer's hiring decision. Omission of the role of participation decision from the estimation of employment probability yields misleading evidence of hiring discrimination against Blacks. This evidence, however, disappears when the participation and hiring equations are estimated jointly in a bivariate framework. The study finds no evidence of discrimination against females and Latinos. In addition, the study shows that family, household and neighbourhood characteristics play significant roles in the determination of teen employment.

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    Bibliographic Info

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

    Volume (Year): 34 (2002)
    Issue (Month): 2 ()
    Pages: 143-156

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    Handle: RePEc:taf:applec:v:34:y:2002:i:2:p:143-156

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    Cited by:
    1. Chen, Guifu & Hamori, Shigeyuki, 2010. "Bivariate probit analysis of differences between male and female formal employment in urban China," Journal of Asian Economics, Elsevier, vol. 21(5), pages 494-501, October.
    2. Maksym Obrizan, 2011. "A Bayesian Model of Sample Selection with a Discrete Outcome Variable: Detecting Depression in Older Adults," Discussion Papers 41, Kyiv School of Economics.
    3. Fábio Veras Soares, 2004. "Do Informal Workers Queue For Formal Jobs in Brazil ?," Discussion Papers 1021, Instituto de Pesquisa Econômica Aplicada - IPEA.
    4. Maksym, Obrizan, 2010. "A Bayesian Model of Sample Selection with a Discrete Outcome Variable," MPRA Paper 28577, University Library of Munich, Germany.

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