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Children and Women's Participation Dynamics: Transitory and Long-Term Effects

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  • Voicu, Alexandru

    ()
    (CUNY - College of Staten Island)

  • Buddelmeyer, Hielke

    ()
    (Melbourne Institute of Applied Economic and Social Research)

Abstract

Children affect the after-birth labor force participation of women in two ways. Directly, the time spent in child-care reduces the labor market effort. The time spent out of the labor market while on maternity leave alters women's participation experience and, thus, indirectly affects subsequent participation behavior. This paper proposes a model that disentangles the direct and indirect effect of children on women's labor force participation, and evaluates their relative importance. Participation decisions on a three-state space - employed full-time, employed part-time, not employed - are represented by a multivariate probit model with a general correlation structure. The model allows for a high degree of flexibility in modeling the dependence of sequential decisions. The estimation is performed using Markov chain Monte Carlo methods. It is shown that the indirect effect, through time out of the labor market, is more important. The discrepancy is sharper for full-time employment and grows with the length of the interruption.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 729.

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Length: 59 pages
Date of creation: Feb 2003
Date of revision:
Handle: RePEc:iza:izadps:dp729

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Keywords: female labor supply; multivariate probit model; Gibbs sampler;

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References

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  1. Tito Boeri & Christopher J. Flinn, 1999. "Returns to Mobility in the Transition to a Market Economy," William Davidson Institute Working Papers Series 217, William Davidson Institute at the University of Michigan.
  2. Keane, Michael P, 1994. "A Computationally Practical Simulation Estimator for Panel Data," Econometrica, Econometric Society, vol. 62(1), pages 95-116, January.
  3. Francine D. Blau & Marianne A. Ferber, 1991. "Career Plans and Expectations of Young Women and Men: The Earnings Gap and Labor Force Participation," Journal of Human Resources, University of Wisconsin Press, vol. 26(4), pages 581-607.
  4. 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.
  5. Geweke, John, 1989. "Bayesian Inference in Econometric Models Using Monte Carlo Integration," Econometrica, Econometric Society, vol. 57(6), pages 1317-39, November.
  6. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-24, September.
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Cited by:
  1. Katrin Sommerfeld, 2009. "Older Babies - More Active Mothers? How Maternal Labor Supply Changes as the Child Grows," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(2), pages 227-240.
  2. E. Bardasi & C. Monfardini, 2004. "Women's Employment, Children and Transition: An Empirical Analysis on Poland," Working Papers 523, Dipartimento Scienze Economiche, Universita' di Bologna.
  3. Johannes Geyer & Viktor Steiner, 2007. "Short-Run and Long-Term Effects of Childbirth on Mothers' Employment and Working Hours across Institutional Regimes: An Empirical Analysis Based on the European Community Household Panel," Discussion Papers of DIW Berlin 682, DIW Berlin, German Institute for Economic Research.
  4. Hielke Buddelmeyer & Kenneth Troske, 2004. "Joint estimation of sequential labor force participation and fertility decisions using Markov chain Monte Carlo techniques," Econometric Society 2004 North American Winter Meetings 334, Econometric Society.
  5. Pierre-Carl Michaud & Konstantinos Tatsiramos, 2005. "Employment Dynamics of Married Women in Europe," Working Papers 273, RAND Corporation Publications Department.
  6. World Bank, 2007. "Chile - County Gender Assessment : Expanding Women's Work Choices to Enhance Chile's Economic Potential," World Bank Other Operational Studies 7639, The World Bank.

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