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Analysis of Labour Participation Behaviour of Korean Women with Dynamic Probit and Conditional Logit

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  • Myoung-Jae Lee
  • Yoon-Hee Tae

Abstract

We analyse the dynamic labour participation behaviour of Korean women. State dependence under unobserved heterogeneity is considered, where the heterogeneity may be unrelated, pseudo-related, or arbitrarily related to regressors. Three minor methodological contributions are made: interaction terms with lagged response are allowed in dynamic conditional logit; a three-stage algorithm for dynamic probit is proposed; and treating the initial response as fixed is shown to be ill-advised. The state dependence is about 0.6 × SD(error), higher for the married or junior college-educated, and lower for women in their twenties and thirties. While education increases participation, college education has negative effects for women in their forties or above. Marriage has a high negative short-term effect but a positive long-term effect. Copyright 2005 Blackwell Publishing Ltd.

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  • 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, February.
  • Handle: RePEc:bla:obuest:v:67:y:2005:i:1:p:71-91
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    Cited by:

    1. Peter Haan, 2005. "State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin," Discussion Papers of DIW Berlin 538, DIW Berlin, German Institute for Economic Research.
    2. Peter Haan & Arne Uhlendorff, 2013. "Intertemporal labor supply and involuntary unemployment," Empirical Economics, Springer, vol. 44(2), pages 661-683, April.
    3. Park, Cheolsung & Kang, Changhui, 2008. "Does education induce healthy lifestyle?," Journal of Health Economics, Elsevier, vol. 27(6), pages 1516-1531, December.
    4. Taehyun Ahn, 2010. "Employment Dynamics of Married Women and the Role of Part-Time Work: Evidence from Korea," Working Papers 1003, Research Institute for Market Economy, Sogang University.
    5. Peter Haan, 2006. "Slowly, but Changing: How Does Genuine State Dependence Affect Female Labor Supply on the Extensive and Intensive Margin," JEPS Working Papers 06-002, JEPS.
    6. Haan, Peter, 2010. "A Multi-state model of state dependence in labor supply: Intertemporal labor supply effects of a shift from joint to individual taxation," Labour Economics, Elsevier, vol. 17(2), pages 323-335, April.

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