Slowly, but Changing: How Does Genuine State Dependence Affect Female Labor Supply on the Extensive and Intensive Margin
AbstractIn this paper I develop an intertemporal discrete choice model of female labor supply that allows to analyze state dependence and labor supply along the extensive and the intensive margin. Drawing on microsimulation the nonlinearities in the household budget set are captured and thus work incentives of both spouses can be accurately described. Unobserved heterogeneity is modeled nonparametrically and the initial conditions problem is explicitly accounted for. The estimation results show that state dependence is significantly positive at the extensive margin, yet modest on the intensive margin. Using the Markov chain property, I analyze the dynamics of labor supply behavior. I find that labor supply elasticities on both margins differ significantly between the short and long run.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by JEPS in its series JEPS Working Papers with number 06-002.
Length: 29 pages
Date of creation: Apr 2006
Date of revision:
Contact details of provider:
Web page: http://jeps.repec.org/
Genuine state dependence; labor supply of married women; panel data; unobserved heterogeneity; microsimulation;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
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.:
- Gong, Xiaodong & Van Soest, Arthur & Villagomez, Elizabeth, 2004.
"Mobility in the Urban Labor Market: A Panel Data Analysis for Mexico,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 53(1), pages 1-36, October.
- Gong, Xiaodong & van Soest, Arthur & Villagomez, Elizabeth, 2000. "Mobility in the Urban Labor Market: A Panel Data Analysis for Mexico," IZA Discussion Papers 213, Institute for the Study of Labor (IZA).
- Gong, X. & Soest, A.H.O. van & Villagomez, E., 2000. "Mobility in the Urban Labor Market: A Panel Data Analysis for Mexico," Discussion Paper 2000-46, Tilburg University, Center for Economic Research.
- Blundell, Richard William & Ham, John & Meghir, Costas, 1987.
"Unemployment and Female Labour Supply,"
CEPR Discussion Papers
149, C.E.P.R. Discussion Papers.
- Train,Kenneth E., 2009.
"Discrete Choice Methods with Simulation,"
Cambridge University Press, number 9780521747387.
- Michaud, Pierre-Carl & Vermeulen, Frederic, 2004.
"A Collective Retirement Model: Identification and Estimation in the Presence of Externalities,"
IZA Discussion Papers
1294, Institute for the Study of Labor (IZA).
- Michaud, P.C. & Vermeulen, F.M.P., 2004. "A Collective Retirement Model: Identification and Estimation in the Presence of Externalities," Discussion Paper 2004-75, Tilburg University, Center for Economic Research.
- Viktor Steiner & Katharina Wrohlich, 2004. "Household Taxation, Income Splitting and Labor Supply Incentives: A Microsimulation Study for Germany," Discussion Papers of DIW Berlin 421, DIW Berlin, German Institute for Economic Research.
- Michaud, Pierre-Carl & Tatsiramos, Konstantinos, 2005.
"Employment Dynamics of Married Women in Europe,"
IZA Discussion Papers
1706, Institute for the Study of Labor (IZA).
- Euwals, R.W. & Soest, A.H.O. van, 1996.
"Desired and Actual Labour Supply of Unmarried Men and Women in the Netherlands,"
1996-23, Tilburg University, Center for Economic Research.
- Euwals, Rob & van Soest, Arthur, 1999. "Desired and actual labour supply of unmarried men and women in the Netherlands," Labour Economics, Elsevier, vol. 6(1), pages 95-118, March.
- Myoung-Jae Lee & Yoon-Hee Tae, 2005. "Analysis of Labour Participation Behaviour of Korean Women with Dynamic Probit and Conditional Logit," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(1), pages 71-91, 02.
- Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
- Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
- Victoria Prowse, 2005.
"State Dependence in a Multi-state Model of Employment Dynamics,"
Economics Series Working Papers
2005-W20, University of Oxford, Department of Economics.
- Prowse, Victoria L., 2005. "State Dependence in a Multi-State Model of Employment Dynamics," IZA Discussion Papers 1623, Institute for the Study of Labor (IZA).
- Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-21, May.
- Bo E. Honoré & Ekaterini Kyriazidou, 2000. "Panel Data Discrete Choice Models with Lagged Dependent Variables," Econometrica, Econometric Society, vol. 68(4), pages 839-874, July.
- Jeffrey M Wooldridge, 2002.
"Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity,"
CeMMAP working papers
CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Jeffrey M. Wooldridge, 2005. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 39-54.
- Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
- Anders Skrondal & Sophia Rabe-Hesketh, 2007. "Latent Variable Modelling: A Survey," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics & Finnish Statistical Society & Norwegian Statistical Association & Swedish Statistical Association, vol. 34(4), pages 712-745.
- Dean R. Hyslop, 1999. "State Dependence, Serial Correlation and Heterogeneity in Intertemporal Labor Force Participation of Married Women," Econometrica, Econometric Society, vol. 67(6), pages 1255-1294, November.
- Guy Laroque & Bernard Salanie, 2002. "Labour market institutions and employment in France," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(1), pages 25-48.
- Laisney, François & Beninger, Denis & Beblo, Miriam, 2003. "Welfare Analysis of Fiscal Reforms: Does the Representation of the Family Decision Process Matter? Evidence for Germany," ZEW Discussion Papers 03-31, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Nisar Ahmad, 2014. "State Dependence in Unemployment," International Journal of Economics and Financial Issues, Econjournals, vol. 4(1), pages 93-106.
- Ambra Poggi & Matteo G. Richiardi, 2012.
"Imputing Individual Effects in Dynamic Microsimulation Models.An application of the Rank Method,"
LABORatorio R. Revelli Working Papers Series
124, LABORatorio R. Revelli, Centre for Employment Studies.
- Matteo Richiardi & Ambra Poggi, 2012. "Imputing Individual Effects in Dynamic Microsimulation Models. An application of the Rank Method," Carlo Alberto Notebooks 267, Collegio Carlo Alberto.
- Richiardi Matteo & Poggi Ambra, 2012. "Imputing Individual Effects in Dynamic Microsimulation Models. An application of the Rank Method," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201213, University of Turin.
- Peter Haan & Arne Uhlendorff, 2013.
"Intertemporal labor supply and involuntary unemployment,"
Springer, vol. 44(2), pages 661-683, April.
- Haan, Peter & Uhlendorff, Arne, 2007. "Intertemporal Labor Supply and Involuntary Unemployment," IZA Discussion Papers 2888, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Gall).
If references are entirely missing, you can add them using this form.