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Participation Behavior of East German Women after German Unification

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Author Info
Bonin, Holger () (IZA, Bonn)
Euwals, Rob () (IZA, Bonn and CEPR, London)

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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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Publisher 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: 34 pages
Date of creation: Dec 2001
Date of revision:
Handle: RePEc:iza:izadps:dp413

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

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Find related papers by JEL classification:
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Lechner, Michael, . "Eine empirische Analyse der Geburtenentwicklung in den neuen Bundesländern," IVS discussion paper series 551, Institut für Volkswirtschaft und Statistik (IVS), University of Mannheim. [Downloadable!]
  2. Blundell, Richard William & Ham, John & Meghir, Costas, 1987. "Unemployment and Female Labour Supply," CEPR Discussion Papers 149, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Boeri, Tito, 2001. "Transition with Labour Supply," IZA Discussion Papers 257, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. 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.
  5. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  6. Hunt, Jennifer, 1998. "The Transition in East Germany: When is a Ten Point Fall in the Gender Wage Gap Bad News?," CEPR Discussion Papers 1805, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Gronau, Reuben, 1974. "Wage Comparisons-A Selectivity Bias," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1119-43, Nov.-Dec.. [Downloadable!] (restricted)
  8. Wolfgang Franz & Viktor Steiner, 2000. "Wages in the East German Transition Process: Facts and Explanations," German Economic Review, Blackwell Publishing, vol. 1(3), pages 241-269, 08. [Downloadable!] (restricted)
  9. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February. [Downloadable!] (restricted)
  10. Svejnar, Jan, 1999. "Labor markets in the transitional Central and East European economies," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 42, pages 2809-2857 Elsevier. [Downloadable!] (restricted)
  11. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September. [Downloadable!] (restricted)
  12. Jennifer Hunt, 1999. "Determinants of Non-employment and Unemployment Durations in East Germany," NBER Working Papers 7128, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  13. Gourieroux, Christian & Monfort, Alain, 1993. "Simulation-based inference : A survey with special reference to panel data models," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 5-33, September. [Downloadable!] (restricted)
  14. Bonin, Holger & Zimmermann, Klaus F., 2000. "The Post-Unification German Labor Market," IZA Discussion Papers 185, Institute for the Study of Labor (IZA). [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Alena Bicáková & Jiri Slacalek & Michal Slavík, 2008. "Labor supply after transition. Evidence from the Czech Republic," Working Paper Series 887, European Central Bank. [Downloadable!]
    Other versions:
  2. Stepan Jurajda & Heike Harmgart, 2002. "Sex Segregation and Wage Gaps in East and West Germany," CERGE-EI Working Papers wp202, The Center for Economic Research and Graduate Education - Economic Institute, Prague. [Downloadable!]
  3. Elena Bardasi & Chiara Monfardini, 2005. "Women's Employment, Children and Transition An Empirical Analysis on Poland," CHILD Working Papers wp07_05, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
    Other versions:
  4. Sumon Kumar Bhaumik & Jeffrey B. Nugent, 2005. "Does Economic Uncertainty Affect the Decision to Bear Children? Evidence from East and West Germany," IZA Discussion Papers 1746, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Harmgart, Heike & Jurajda, Stepan, 2004. "When do 'Female' Occupations Pay More?," CEPR Discussion Papers 4270, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Zamo-Akono, C. & Tsafack-Nanfosso, R., 2008. "Fécondité, Santé et Participation des femmes au Marché du Travail
    [Fertility, health and female labour force participation: there is a missing link!]    ," MPRA Paper 10839, University Library of Munich, Germany. [Downloadable!]
  7. Jurajda, Stepán & Harmgart, Heike, 2004. "When Are ‘Female’ Occupations Paying More?," IZA Discussion Papers 985, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Hans-Ulrich Brautzsch & Johann (IAB) Fuchs & Cornelia Lang, 2006. "„Arbeitsplatzausstattung“ und „Arbeitsplatzlücke“ nach Geschlechtern in Ost- und Westdeutschland," IWH Discussion Papers 9-06, Halle Institute for Economic Research. [Downloadable!]
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