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The Effect of Residential Location and Housing Unit Characteristics on Labor Force Participation of Childbearing Women in Indonesia: Using Twin Births As A Quasi-Natural Experiment

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  • Yusuf Sofiyandi1

    () (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia)

Abstract

I empirically investigated the influence of residential location and housing unit characteristics on the labor force participation of childbearing women by applying quasi-experimental methods and taking a developing country’s perspective – where the family size tends to grow faster. While the choices of residential location and housing unit characteristics are rarely exogenous, it is important to deal with the endogeneity problem. I use instrumental variable models, with twin births and gender composition as the exogenous sources of variation in the family size, and exploit an enormous micro dataset from the Indonesian Census Population 2010. Previous works of literature have examined the effect of twin birth on the female labor supply, but less attention given to the housing decision. This study provides new evidence of a forward-looking behavior about the residential location and housing consumption due to household size effects and shows that such behavior will most likely influence the female labor supply

Suggested Citation

  • Yusuf Sofiyandi1, 2018. "The Effect of Residential Location and Housing Unit Characteristics on Labor Force Participation of Childbearing Women in Indonesia: Using Twin Births As A Quasi-Natural Experiment," LPEM FEBUI Working Papers 201822, LPEM, Faculty of Economics and Business, University of Indonesia, revised Jul 2018.
  • Handle: RePEc:lpe:wpaper:201822
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    More about this item

    Keywords

    residential location — housing — labor force — childbearing women — twin births;

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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