This panel study explores the impact of different lifecycle events on women's labour force transitions. Whether the factors that determine entry into the labour force differ from the factors that determine withdrawal from the labour force is explicitly investigated. The results demonstrate that labour force transitions – entry and withdrawal – occur more frequently among young women. The event of childbirth is strongly associated with labour force withdrawal, while marital separation and reductions in family earnings are strongly associated with labour force entry. Moreover, labour force transition probabilities are more sensitive to income-reducing events than to income-supplementing events.
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Find related papers by JEL classification: J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
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