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Why is the share of women willing to work in East Germany larger than in West Germany? A logit model of extensive labour supply decision

  • Beate Grundig
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    The aim of the paper is to analyse differences in the labour force participation (LFP) between East and West German women. Using microcensus data in a binary choice model, we distinguish three main explanations for these differences: the skill composition, the regional labour market and childcare availability. As LFP in-creases in the skill-level, the larger share of high-skilled women in East Germany can explain more than 10 percent of the differences. Whereas East German women do not vary their efforts when regional labour market conditions worsen, West German women are discouraged thereof. Female LFP in East Germany is positively influenced by the provision of full-time childcare while West German women do not show any significant reaction.

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    File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-Ifo_Working_Papers/wp-ifo-2005-2010/IfoWorkingPaper-56.pdf
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    Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 56.

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    Date of creation: 2008
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    Handle: RePEc:ces:ifowps:_56
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    1. repec:cup:cbooks:9780521815888 is not listed on IDEAS
    2. van Ham, Maarten & Büchel, Felix, 2004. "Unwilling or Unable? Spatial, Institutional and Socio-Economic Restrictions on Females' Labor Market Access," IZA Discussion Papers 1034, Institute for the Study of Labor (IZA).
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    14. Shimada, Haruo & Higuchi, Yoshio, 1985. "An Analysis of Trends in Female Labor Force Participation in Japan," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S355-74, January.
    15. Gustafsson, Siv & Jacobsson, Roger, 1985. "Trends in Female Labor Force Participation in Sweden," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S256-74, January.
    16. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    17. Gregory, R G & McMahon, P & Whittingham, B, 1985. "Women in the Australian Labor Force: Trends, Causes, and Consequences," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S293-309, January.
    18. Hernandez Iglesias, Feliciano & Riboud, Michelle, 1985. "Trends in Labor Force Participation of Spanish Women: An Interpretive Essay," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S201-17, January.
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