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Participation Behavior of East German Women after German Unification

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  • Bonin, Holger

    ()
    (ZEW Mannheim)

  • Euwals, Rob

    ()
    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

The paper studies the determinants of labor force participation by East German women after unification. To isolate the role of preferences on labor force participation from individual characteristics, we develop a panel data model that simultaneously explains participation, employment and wages. The model, estimated for East and West Germany on the basis of the German Socio-Economic Panel, indicates that distinct preferences could explain the regional difference in participation rates at unification. Afterward East German women became less willing to participate, but the negative labor supply trend was offset on the aggregate level by changes in characteristics and wages promoting participation.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 413.

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Length: 35 pages
Date of creation: Dec 2001
Date of revision:
Publication status: published as 'Why Are Labor Force Participation Rates of East German Women So High?' in: Applied Economics Quarterly, 2005, 51(4), 307-322
Handle: RePEc:iza:izadps:dp413

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Keywords: panel data; labor force participation; Transitional economies;

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  1. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  2. Hunt, Jennifer, 1998. "The Transition in East Germany: When is a Ten Point Fall in the Gender Wage Gap Bad News?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1805, C.E.P.R. Discussion Papers.
  3. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, Elsevier, vol. 12(2), pages 209-217, February.
  4. Chase, R.S., 1995. "Women's Labor Force Participation During and After Communism: A Case Study of the Czech Republic and Slovakia," Papers, Yale - Economic Growth Center 768, Yale - Economic Growth Center.
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  9. Richard V. Burkhauser & Michaela Kreyenfeld & Gert G. Wagner, 1997. "The German Socio-Economic Panel: A Representative Sample of Reunited Germany and its Parts," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 66(1), pages 7-16.
  10. Blundell, Richard & Ham, John & Meghir, Costas, 1987. "Unemployment and Female Labour Supply," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 97(388a), pages 44-64, Supplemen.
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  12. Gronau, Reuben, 1974. "Wage Comparisons-A Selectivity Bias," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 82(6), pages 1119-43, Nov.-Dec..
  13. Tito Boeri, 1999. "Transition with Labour Supply," William Davidson Institute Working Papers Series 274, William Davidson Institute at the University of Michigan.
  14. Jennifer Hunt, 1999. "Determinants of Non-employment and Unemployment Durations in East Germany," NBER Working Papers 7128, National Bureau of Economic Research, Inc.
  15. Lechner, Michael, 1997. "Eine empirische Analyse der Geburtenentwicklung in den neuen Bundesländern," Discussion Papers, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre 551, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  16. Ruth Grunert, 2000. "Bei Annährung weiterhin Besonderheiten der Konsumstruktur in Ostdeutschland," Wirtschaft im Wandel, Halle Institute for Economic Research, Halle Institute for Economic Research, vol. 6(7), pages 204-209.
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