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Why is the share of women willing to work in East Germany larger than in West Germany? A logit model of extensive labour supply decision

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  • Beate Grundig
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    Abstract

    The aim of the paper is to analyse differences in the labour force participation (LFP) between East and West German women. Using microcensus data in a binary choice model, we distinguish three main explanations for these differences: the skill composition, the regional labour market and childcare availability. As LFP in-creases in the skill-level, the larger share of high-skilled women in East Germany can explain more than 10 percent of the differences. Whereas East German women do not vary their efforts when regional labour market conditions worsen, West German women are discouraged thereof. Female LFP in East Germany is positively influenced by the provision of full-time childcare while West German women do not show any significant reaction.

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    File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-Ifo_Working_Papers/wp-ifo-2005-2010/IfoWorkingPaper-56.pdf
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    Bibliographic Info

    Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 56.

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    Date of creation: 2008
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    Handle: RePEc:ces:ifowps:_56

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    Keywords: Female labour supply; childcare; logit model; decomposition;

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    References

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    1. Denise Doiron & Guyonne Kalb, 2004. "Demands for Childcare and Household Labour Supply in Australia," Melbourne Institute Working Paper Series wp2004n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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    4. Colombino, Ugo & De Stavola, Bianca, 1985. "A Model of Female Labor Supply in Italy Using Cohort Data," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S275-92, January.
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    7. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    8. Holger Bonin & Rob Euwals, 2002. "Participation Behavior of East German Women after German Unification," William Davidson Institute Working Papers Series 477, William Davidson Institute at the University of Michigan.
    9. Cramer,J. S., 2003. "Logit Models from Economics and Other Fields," Cambridge Books, Cambridge University Press, number 9780521815888, October.
    10. 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.
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    13. van Ham, Maarten & Büchel, Felix, 2004. "Unwilling or Unable? Spatial, Institutional and Socio-Economic Restrictions on Females' Labor Market Access," IZA Discussion Papers 1034, Institute for the Study of Labor (IZA).
    14. Ofer, Gur & Vinokur, Aaron, 1985. "Work and Family Roles of Soviet Women: Historical Trends and Cross-Section Analysis," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S328-54, January.
    15. Gregory, R G & McMahon, P & Whittingham, B, 1985. "Women in the Australian Labor Force: Trends, Causes, and Consequences," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S293-309, January.
    16. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
    17. Shimada, Haruo & Higuchi, Yoshio, 1985. "An Analysis of Trends in Female Labor Force Participation in Japan," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S355-74, January.
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    Cited by:
    1. Barbara Hanel & Regina T. Riphahn, 2010. "The Employment of Mothers - Recent Developments and their Determinants in East and West Germany," CESifo Working Paper Series 3189, CESifo Group Munich.
    2. Verena Tobsch, 2013. "Betreuung von Schulkindern: ein weiterer Schlüssel zur Aktivierung ungenutzter Arbeitskräftepotenziale?," SOEPpapers on Multidisciplinary Panel Data Research 573, DIW Berlin, The German Socio-Economic Panel (SOEP).

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