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Parametric and Semiparametric Estimation of the Binary Response Model of Labor Market Participation

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  • Michael Gerfin

Abstract

This paper compares the familiar probit model with three semiparametric estimators of binary response models in an application to labour market participation of married women. This exercise is performed using two different cross-section data sets from Switzerland and Germany. For the Swiss data the probit specification cannot be rejected and the models yield similar results. In the German case the probit model is rejected, but the coefficient estimates do not vary substantially across the models. The predicted choice probabilities, however, differ systematically for a subset of the sample. The results of this paper indicate that more work is necessary on specification tests of semiparametric models and on simulations using these models. Copyright 1996 by John Wiley & Sons, Ltd.

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Bibliographic Info

Paper provided by Universitaet Bern, Departement Volkswirtschaft in its series Diskussionsschriften with number dp9315.

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Date of creation: Dec 1993
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Handle: RePEc:ube:dpvwib:dp9315

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Cited by:
  1. Jeff Racine, 2000. "Nonparametric Estimation of Conditional Distributions in the Presence of Continuous and Categorical Data," Econometric Society World Congress 2000 Contributed Papers 0713, Econometric Society.
  2. Anil Kumar, 2006. "Nonparametric conditional density estimation of labour force participation," Applied Economics Letters, Taylor and Francis Journals, vol. 13(13), pages 835-841.
  3. Cizek, P., 2007. "General Trimmed Estimation: Robust Approach to Nonlinear and Limited Dependent Variable Models (Replaces DP 2007-1)," Discussion Paper 2007-65, Tilburg University, Center for Economic Research.
  4. Li, Qi & Racine, Jeff, 2003. "Nonparametric estimation of distributions with categorical and continuous data," Journal of Multivariate Analysis, Elsevier, vol. 86(2), pages 266-292, August.
  5. José Miguel Benavente & David Bravo & Rodrigo Montero, 2011. "Wages And Workplace Computer Use In Chile," The Developing Economies, Institute of Developing Economies, vol. 49(4), pages 382-403, December.
  6. Boriss Siliverstovs & Dmitri Koulikov, 2003. "Labor Supply of Married Females in Estonia," Discussion Papers of DIW Berlin 321, DIW Berlin, German Institute for Economic Research.
  7. Giuseppe De Luca & Franco Peracchi, 2007. "A sample selection model for unit and item nonresponse in cross-sectional surveys," CEIS Research Paper 95, Tor Vergata University, CEIS.
  8. Cizek, P., 2008. "Semiparametric Robust Estimation of Truncated and Censored Regression Models," Discussion Paper 2008-34, Tilburg University, Center for Economic Research.
  9. Maria Fraga O. Martins, 2001. "Parametric and semiparametric estimation of sample selection models: an empirical application to the female labour force in Portugal," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(1), pages 23-39.
  10. Heinz König & Michael Lechner, 1994. "Some Recent Developments in Microeconometrics - A Survey," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 130(III), pages 299-331, September.
  11. Insik Min & Sheng jang Sheu & Zijun Wang, 2003. "A Monte Carlo Comparison of Various Semiparametric Type-3 Tobit Estimators," Annals of Economics and Finance, Society for AEF, vol. 4(1), pages 125-136, May.
  12. Cizek, P., 2007. "General Trimmed Estimation: Robust Approach to Nonlinear and Limited Dependent Variable Models (Replaced by DP 2007-65)," Discussion Paper 2007-1, Tilburg University, Center for Economic Research.
  13. Ker, Alan P. & Ergun, A. Tolga, 2003. "On The Revelation Of Asymmetric Information Of The Private Insurance Companies In The Us Crop Insurance Program," 2003 Annual meeting, July 27-30, Montreal, Canada 21898, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  14. Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355.
  15. Anil Kumar, 2005. "Nonparametric estimation of the impact of taxes on female labor supply," Working Papers 05-05, Federal Reserve Bank of Dallas.
  16. Mailu, Stephen & Wachira, Ann, 2009. "The influence of prices on market participation decisions of indigenous poultry farmers in four districts of Eastern Province, Kenya," MPRA Paper 21312, University Library of Munich, Germany.

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