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State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin Author info | Abstract | Publisher info | Download info | Related research | Statistics Peter Haan
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In this paper I develop an intertemporal discrete choice model of labor supply. The framework incorporates the nonlinearities in the household budget set and accounts for state dependence in labor supply. Based on panel data for Germany (SOEP), I estimate this model using a dynamic conditional logit panel data model with random effects. The estimation results show that state dependence is significantly positive at the extensive margin, yet modest or non existing on the intensive margin. Using the Markov chain property, I derive short and long term labor supply elasticities on both the intensive and extensive margin. The labor supply elasticities differ significantly between the short and long run.
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number
538.
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Length: 22 p.
Date of creation: 2005Date of revision:
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Keywords: State dependence ; Labor supply of married women ; Panel data ; Unobserved heterogeneity ; Other versions of this item:
Find related papers by JEL classification: C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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