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Decision Structures and Discrete Choices: An Application to Labour Market Participation and Fertility

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  • Di Tommaso, M.L.
  • Weeks, M.

Abstract

In many published studies involving discrete class, a large class of models has been utilised without apparent consideration of either the statistical or the behavioural relationships that exist between different model structures. In this paper the authors consider a number of alternative ways of modelling systems of discrete choice. Joint labour force participation and the fertility decision problem are used as an example. The focus is on the outcome of two decisions: the decision to have children, and whether to work -- full-time, part-time, or not at all. Unlike the majority of work in this area, a class of discrete choice models is subjected to a series of non-nested tests.

Suggested Citation

  • Di Tommaso, M.L. & Weeks, M., 2000. "Decision Structures and Discrete Choices: An Application to Labour Market Participation and Fertility," Cambridge Working Papers in Economics 0009, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:0009
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    References listed on IDEAS

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    1. Willis, Robert J, 1973. "A New Approach to the Economic Theory of Fertility Behavior," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 14-64, Part II, .
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    3. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-1475, September.
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    5. Pesaran, M. H. & Weeks, M., 1999. "Non-nested Hypothesis Testing: An Overview," Cambridge Working Papers in Economics 9918, Faculty of Economics, University of Cambridge.
    6. Geoffrey Carliner & Christopher Robinson & Nigel Tomes, 1980. "Female Labour Supply and Fertility in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 13(1), pages 46-64, February.
    7. James J. Heckman & Robert J. Willis, 1976. "Estimation of a Stochastic Model of Reproduction: An Econometric Approach," NBER Chapters, in: Household Production and Consumption, pages 99-146, National Bureau of Economic Research, Inc.
    8. Melvyn Weeks, "undated". "Testing Binomial and Multinomial Choice Models Using Cox's Non-Nested Test," Discussion Papers 95/45, Department of Economics, University of York.
    9. White, Halbert, 1982. "Regularity conditions for cox's test of non-nested hypotheses," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 301-318, August.
    10. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240, National Bureau of Economic Research, Inc.
    11. Pesaran, B. & Pesaran, M.H., 1992. "A Non-Nested Test of Level-Differenced versus Log-Differenced Stationary Models," Cambridge Working Papers in Economics 9222, Faculty of Economics, University of Cambridge.
    12. Weeks, M. & Orne, C., 1999. "The Statistical Relationship between Bivariate and Multinomial Choice Models," Cambridge Working Papers in Economics 9912, Faculty of Economics, University of Cambridge.
    13. Jacob Mincer, 1962. "Labor Force Participation of Married Women: A Study of Labor Supply," NBER Chapters, in: Aspects of Labor Economics, pages 63-105, National Bureau of Economic Research, Inc.
    14. Robert Moffitt, 1984. "Profiles of Fertility, Labour Supply and Wages of Married Women: A Complete Life-Cycle Model," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 51(2), pages 263-278.
    15. John G. Cragg & Russell S. Uhler, 1970. "The Demand for Automobiles," Canadian Journal of Economics, Canadian Economics Association, vol. 3(3), pages 386-406, August.
    16. Di Tommaso, Maria Laura, 1999. "A Trivariate Model of Participation, Fertility and Wages: The Italian Case," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(5), pages 623-640, September.
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    Cited by:

    1. Massimiliano Bratti, 2003. "Labour force participation and marital fertility of Italian women: The role of education," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(3), pages 525-554, August.
    2. Berg, Nathan, 2006. "Behavioral Labor Economics," MPRA Paper 26366, University Library of Munich, Germany.
    3. Anna Sibilla Francesca DE PAOLI, 2010. "The effect of schooling on fertility, labor market participation and children’s outcomes, evidence from Ecuador," Departmental Working Papers 2010-30, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    4. Nathan Berg & Teresa D. Nelson, 2016. "Pregnancy and Dropout: Effects of Family, Neighborhood, and High School Characteristics on Girls’ Fertility and Dropout Status," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 35(6), pages 757-789, December.
    5. Wuyang Hu & Wiktor L. Adamowicz & Michele M. Veeman, 2009. "Consumers' Preferences for GM Food and Voluntary Information Access: A Simultaneous Choice Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(2), pages 241-267, June.

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    More about this item

    Keywords

    Discrete choice; Multinomial response; Bivariate models; Labour supply; Fertility; Nonnested tests;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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