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The participation of couples in the labor market: an econometric analysis

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Author Info

  • DUGUET Emmanuel

    (EPEE - University of Evry)

  • SIMONNET Veronique

    (TEAM - University of Paris I)

Abstract

This paper examines the interactions between household members’ utilities when deciding whether or not to join the labor market. Using asymptotic least squares, we analyze a sample of 5425 couples living in France in 1997. By comparing the results obtained with more standard methods, we find that the man’s participation equation is the most affected by the introduction of simultaneous decision making in the couple. The woman’s decision to participate has a positive and significant influence on their spouse’s decision to work, as do the number of children and the birth of a new child. The fact that the presence of children increases the participation of men and reduces the participation of women suggests that the added-worker effect should be interpreted more as a demographic phenomenon than as a consequence of unemployment.

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Bibliographic Info

Paper provided by EconWPA in its series Labor and Demography with number 0411005.

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Length: 27 pages
Date of creation: 16 Nov 2004
Date of revision:
Handle: RePEc:wpa:wuwpla:0411005

Note: Type of Document - pdf; pages: 27
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Web page: http://128.118.178.162

Related research

Keywords: Collective labor supply; labor market participation; couples; asymptotic least squares;

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References

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  1. Margolis, David N. & Simonnet, Véronique, 2003. "Educational Track, Networks and Labor Market Outcomes," IZA Discussion Papers 699, Institute for the Study of Labor (IZA).
  2. Davies, Richard B & Elias, Peter & Penn, Roger, 1992. "The Relationship between a Husband's Unemployment and His Wife's Participation in the Labour Force," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(2), pages 145-71, May.
  3. Kooreman, Peter, 1994. "Estimation of Econometric Models of Some Discrete Games," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 9(3), pages 255-68, July-Sept.
  4. Kooreman, P., 1994. "Estimation of econometric models of some discrete games," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377584, Tilburg University.
  5. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
  6. Dex, Shirley, et al, 1995. "Cross-National Comparisons of the Labour Force Participation of Women Married to Unemployed Men," Oxford Economic Papers, Oxford University Press, vol. 47(4), pages 611-35, October.
  7. Marjorie B. McElroy, 1990. "The Empirical Content of Nash-Bargained Household Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 559-583.
  8. Donni, Olivier, 2003. "Collective household labor supply: nonparticipation and income taxation," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1179-1198, May.
  9. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
  10. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
  11. Stéfan Lollivier, 2001. "Les choix d'activité des femmes en couple : une approche longitudinale," Économie et Statistique, Programme National Persée, vol. 349(1), pages 125-140.
  12. Dominique Anxo & Yusuf Kocoglu & Lennart Flood, 2002. "Offre de travail et répartition des activités domestiques et parentales au sein du couple : une comparaison entre la France et la Suède," Économie et Statistique, Programme National Persée, vol. 352(1), pages 127-150.
  13. Giannelli, Gianna & Micklewright, John, 1995. "Why Do Women Married to Unemployed Men Have Low Participation Rates?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(4), pages 471-86, November.
  14. Sylvie Lagarde & Jean-David Fermanian, 1999. "Les horaires de travail dans le couple," Économie et Statistique, Programme National Persée, vol. 321(1), pages 89-110.
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Cited by:
  1. Verónica Herrero & Mónica Bocco, 2007. "Comparación de Ponderaciones en Regresiones Probit Simultáneas en un Modelo para la Estimación de la Participación Laboral," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 0(2), pages 95-124, July.
  2. Guillaume Allègre, 2006. "L'emploi au niveau des ménages, 1982-2002 : mesurer la polarisation de l'emploi entre les ménages," Documents de Travail de l'OFCE 2006-20, Observatoire Francais des Conjonctures Economiques (OFCE).
  3. Guillaume Allegre, 2006. "L’emploi au niveau des ménages, 1982-2002," Sciences Po publications N°2006-20, Sciences Po.
  4. Elena Stancanelli, 2007. "Marriage and Work: an analysis for French couples in the last decade," Documents de Travail de l'OFCE 2007-10, Observatoire Francais des Conjonctures Economiques (OFCE).

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