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Careers or Stop Gap Work? Panel Data Analysis of Wives' Labour Supply Choices in Spain

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  • Paula Adam
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    Abstract

    I include the variables wives' age and cohort and children in a participation equation to explore how the following two economic issues affect participation. First, a structural change in terms of participation over the life-cycle. Because a structural change does not affect all women of the young cohorts, I distinguish between long-run participating women (i.e. those whose participation behaviour resembles that found after the structural change) and a priori inactive women (i.e. those with a traditional behaviour). Second, it explores the impact of current social policies on mothers' participation. Despite that a negative correlation between children and mothers' participation (especially pre-scholars) is considered a stylized fact in the literature, long-run participating women may not withdraw from the labour market after maternity to avoid the likely experience loss (i.e. real wage decline) due to long absences. This analysis is carryed out by exploiting a longitudinal Spanish survey (the ECPF). Despite some lacking variables, the use of panel data methods yields to satisfactory results.

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    Paper provided by IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University in its series Working Papers with number 104.

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    Handle: RePEc:igi:igierp:104

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    1. Heckman, James J, 1974. "Effects of Child-Care Programs on Women's Work Effort," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S136-S163, Part II, .
    2. William Clifford & Patricia Tobin, 1977. "Labor force participation of working mothers and family formation: Some further evidence," Demography, Springer, vol. 14(3), pages 273-284, August.
    3. Martinez-Granado, M., 1994. "An Empirical Model of Female labour Supply for Spain," Papers 9412, Centro de Estudios Monetarios Y Financieros-.
    4. Adam, Paula, 1996. "Mothers in an Insider-Outsider Economy: The Puzzle of Spain," Journal of Population Economics, Springer, vol. 9(3), pages 301-23, August.
    5. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
    6. Mary Corcoran & Greg J. Duncan & Michael Ponza, 1983. "A Longitudinal Analysis of White Women's Wages," Journal of Human Resources, University of Wisconsin Press, vol. 18(4), pages 497-520.
    7. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
    8. Paula Adam, 1996. "Mothers in an insider-outsider economy: The puzzle of Spain," Journal of Population Economics, Springer, vol. 9(3), pages 301-323.
    9. repec:nsr:niesrd:50 is not listed on IDEAS
    10. Giannelli, Gianna & Micklewright, John, 1995. "Why Do Women Married to Unemployed Men Have Low Participation Rates?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(4), pages 471-86, November.
    11. Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
    12. Siv Gustafsson & Frank P. Stafford, 1994. "Three Regimes of Child Care: The United States, the Netherlands, and Sweden," NBER Chapters, in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 333-362 National Bureau of Economic Research, Inc.
    13. Becker, Gary S, 1985. "Human Capital, Effort, and the Sexual Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S33-58, January.
    14. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
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